RELATING TO LABOR DAY.

Labor Taxes

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: KILA, AMATO, CHUN, GARCIA, ILAGAN, KAPELA, MIYAKE, MORIKAWA, OLDS, REYES ODA, TAKENOUCHI, TAM
Last action: 2026-02-13
Official status: The committee(s) on ECD recommend(s) that the measure be deferred.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide details on enforcement or monitoring mechanisms.

Paid Labor Day Holiday for Construction Workers

This bill establishes a nonrefundable tax credit for employers who provide construction workers with a paid day off on Labor Day.

What This Bill Does

Establishes a new section in the Hawaii Revised Statutes to create a nonrefundable tax credit for employers providing a paid Labor Day holiday to construction workers.
Defines 'construction worker' as any individual employed in the construction industry, including specific roles such as ironworkers, plumbers, carpenters, electricians, and others involved in building or repairing structures.
Specifies that the amount of the tax credit is based on each construction worker's average daily wage for the four weeks before Labor Day.
Requires employers to file claims for this tax credit within one year after the end of the taxable year.

Who It Names or Affects

Employers who provide a paid day off on Labor Day to construction workers.
Construction workers in Hawaii who receive a paid day off on Labor Day from their employers.

Terms To Know

Tax Credit: A reduction in the amount of tax owed to the government, which can be used to lower an employer's net income tax liability.
Construction Worker: An individual employed in the construction industry who performs tasks such as building, repairing, and maintaining structures.

Limits and Unknowns

The bill does not specify what happens if an employer fails to file a claim for the tax credit within one year of the end of the taxable year.
It is unclear how this legislation will be enforced or monitored by the government.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: This amendment creates a nonrefundable tax credit for employers who give construction workers a paid Labor Day holiday.

Adds a new section to Hawaii Revised Statutes allowing employers who provide a paid Labor Day holiday to construction workers a nonrefundable tax credit.
Sets the maximum total amount of tax credits at $2,000,000 per year.
Specifies that if the tax credit exceeds an employer's income tax liability for the year, the excess can be used as a credit in future years.

The exact dollar amount of the tax credit per construction worker is not specified and needs to be determined by further legislation or regulation.
The effective date mentioned (July 1, 3000) appears incorrect and likely contains an error.

Bill History

2026-02-13 H
The committee(s) on ECD recommend(s) that the measure be deferred.
2026-02-10 H
Bill scheduled to be heard by ECD on Friday, 02-13-26 8:30AM in House conference room 423 VIA VIDEOCONFERENCE.
2026-02-05 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on ECD with Representative(s) Shimizu voting aye with reservations; none voting no (0) and Representative(s) Woodson excused (1).
2026-02-05 H
Reported from LAB (Stand. Com. Rep. No. 17-26) as amended in HD 1, recommending passage on Second Reading and referral to ECD.
2026-02-03 H
The committee on LAB recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Sayama, Lee, M., Garrett, Kapela, Kong, Reyes Oda; Ayes with reservations: none; Noes: none; and Excused: none.
2026-01-29 H
Bill scheduled to be heard by LAB on Tuesday, 02-03-26 9:30AM in House conference room 309 VIA VIDEOCONFERENCE.
2026-01-28 H
Referred to LAB, ECD, FIN, referral sheet 3
2026-01-26 H
Introduced and Pass First Reading.
2026-01-23 H
Pending introduction.

Official Summary Text

RELATING TO LABOR DAY.
Paid Labor Day Holiday for Construction Workers; Tax Credit
Establishes a nonrefundable tax credit for employers who provide a paid Labor Day holiday to construction workers. Effective 7/1/3000. (HD1)

Current Bill Text

Read the full stored bill text

HB2028

HOUSE OF REPRESENTATIVES

H.B. NO.

2028

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to labor day
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION 1.
�

The legislature finds that Labor Day is a
federal holiday dedicated to recognizing the contributions of workers to the
strength, prosperity, and well-being of the nation.
�
The construction industry plays a vital role
in the economic and infrastructural development of Hawaii.
�
Construction workers often perform physically
demanding and hazardous labor, contributing significantly to the State's
growth.
�
The legislature further finds
that it is fitting that these workers be afforded a paid day of rest and
recognition on Labor Day.
�
However, the
legislature also recognizes that imposing the cost of this paid holiday solely
on private employers may create an undue financial burden.
�
The legislature additionally finds that it is
in the State's best interest to provide funding to compensate construction
workers for the Labor Day holiday
.

����
Therefore, the purpose of this Act
is to establish a refundable tax credit for employers who provide a paid Labor
Day holiday to construction workers.

����
SECTION 2.
�
Chapter 235, Hawaii Revised Statutes, is
amended by adding a new section to be appropriately designated and to read as
follows:

����
"
�235-
�
Paid
Labor Day holiday for construction workers; tax credit.
�
(a)
�
As used in this section:

����
"Construction
worker" means any individual employed in the construction industry,
including but not limited to:

����
(1)
�
Ironworkers;

����
(2)
�
Plumbers;

����
(3)
�
Carpenters;

����
(4)
�
Electricians;

����
(5)
�
Mason;

����
(6)
�
Roofers;

����
(7)
�
Laborers;

����
(8)
�
Operators of
construction equipment;

����
(9)
�
Sheet-metal workers;

���
(10)
�
Elevator workers;

���
(11)
�
Heat and frost insulators
and related workers;

���
(12)
�
Bricklayers and
related workers;

���
(13)
�
Boiler makers;

���
(14)
�
Painters, glaziers,
floor layers, and tapers;

���
(15)
�
Roofers, waterproofers,
and related workers; and

���
(16)
�
Any other worker
whose primary duties involve on-site construction, alteration, or repair of
buildings, structures, or infrastructure.

����
"
Labor
Day" means the
Labor Day holiday recognized by the State in
section 8-1.

����
(b)
�
Notwithstanding
any other provision of law to the contrary, there shall be allowed to each
taxpayer that is subject to the tax imposed by this chapter and that employs
construction workers a refundable paid Labor Day tax credit, which shall be
deductible from the taxpayer's net income tax liability, if any, imposed by
this chapter for the taxable year in which the credit is properly claimed.

����
(c)
�
The taxpayer shall be eligible for the credit
for each construction worker employed by the taxpayer for which the taxpayer
provides a paid day off on Labor Day.

����
(d)
�
The amount of the tax credit shall be
calculated based on the construction worker's average daily wage for the four
weeks preceding Labor Day for an eight-hour day for each construction worker
employed by the taxpayer.

����
(e)
�
If the paid Labor Day holiday tax credit
allowed under subsection (b) exceeds the taxpayer's net income tax liability,
the excess of credit over liability shall be refunded to the taxpayer; provided
that no refunds or payment on account of the tax credit allowed by this section
shall be made for amounts less than $1.

����
All
claims for tax credits under this section, including any amended claims, shall
be filed on or before the end of the twelfth month following the close of the
taxable year for which the credits may be claimed.
�
Failure to comply with the foregoing provision
shall constitute a waiver of the right to claim the credit.

����
(f)
�
This section shall not apply to construction
workers employed by the State or any of its political subdivisions who are
already entitled to paid holidays under applicable collective bargaining
agreements or civil service rules.

����
(g)
�
The director of taxation shall prepare any
forms that may be necessary to claim a credit under this section.
�
The director may also require the taxpayer to
furnish information to ascertain the validity of the claim for credit made
under this section.
�
The director of
taxation may adopt rules pursuant to chapter 91 to implement this section.
"

����
SECTION
3.
�
New statutory material is
underscored.

����
SECTION 4.
�
This Act, upon its approval, shall apply to
taxable years beginning after December 31, 2025.

INTRODUCED BY:

_____________________________

Report Title:

Paid Labor
Day Holiday for Construction Workers; Tax Credit

Description:

Establishes
a refundable tax credit for employers who provide a paid Labor Day holiday to
construction workers.
�
Provides a
mechanism for claiming the refundable tax credit.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.