If enacted, SB405 will play a crucial role in Hawaii's ongoing efforts to mitigate water pollution and safeguard public health. The proposed tax credit of up to $10,000 for eligible homeowners will alleviate the financial burden associated with upgrading or connecting cesspools, which is vital as all cesspools in the state are required to be replaced by 2050 under previous legislation (Act 125). This financial assistance is particularly targeted towards cesspools located near sensitive environmental areas, thus promoting initiatives focused on preserving Hawaii's natural resources.
SB405 aims to address the significant water pollution issues in Hawaii caused by cesspools, which are outdated systems that discharge raw sewage into the environment. The bill establishes a cesspool upgrade, conversion, or connection income tax credit to assist homeowners financially in upgrading their cesspools to director-approved wastewater systems or connecting them to a sewer system. This initiative comes in response to the findings that approximately 88,000 cesspools in the state are contributing to environmental degradation, with over 43,000 of these being particularly threatened due to their proximity to drinking water sources or surface water.
Notable concerns surrounding SB405 may involve discussions about the adequacy of the financial assistance provided, especially given that the total amount of tax credits is capped at $5 million annually. Some may argue that this cap could limit access for many homeowners who need to upgrade their systems urgently, potentially resulting in ongoing pollution issues. Furthermore, the difficulty in certifying which cesspools are 'qualified' under the new criteria set by the Department of Health could lead to delays in implementation and frustration among homeowners seeking to comply with state regulations.