Hawaii HB 796: RELATING TO TAX CREDITS.

Bill Text

HOUSE OF REPRESENTATIVES
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO TAX CREDITS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
1 SECTION 1. The purpose of this Act is to require income
2 tax credits established or renewed after December 31, 2025, to
3 include a five—year sunset or a gradual reduction over a three-
4 year period, beginning with the sixth year of the credit.
5 SECTION 2. Chapter 235, Hawaii Revised Statutes, is
6 amended by adding a new section to part I to be appropriately
7 designated and to read as follows:
8 ~235- Tax credits; generally. Any income tax credit
9 established or renewed under this chapter after December 31,
10 2025, shall include either:
11 (1) A five—year sunset date; or
12 (2) Beginning with the sixth year of the credit, an annual
13 one-third reduction in the credit amount allowed to be
14 claimed, over a three-year period.”
15 SECTION 3. New statutory material is underscored.
16 SECTION 4. This Act shall take effect on July 1, 2025.
17
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RB. NO. 7~
INTRODUCED BY: ____________________________
JAN 172025
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H.B. NO.1~
Report Title:
Income Tax Credits; Sunset; Annual Reduction
Description:
Requires that income tax credits established or renewed after
12/31/2025 include a five—year sunset or an annual one-third
reduction, beginning with the sixth year of the credit.
The summary description oflegislation appearing on this page is forinformational purposes only and is
not legislation orevidence oflegislative intent.
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