The implementation of SB630 will modify Chapter 235 of the Hawaii Revised Statutes by adding provisions pertinent to the tax credit for whole house water filter systems. The total amount of credits available is capped at $5,000,000 per taxable year, emphasizing the state's intent to balance financial resources with the growing need for water purification technologies in residential settings. Taxpayers who exceed the cap for a given year will be able to carry over the unclaimed credit to the following year, enabling more residents to benefit from the initiative over time.
SB630 introduces an income tax credit for taxpayers who purchase and install whole house water filter systems. This legislation aims to encourage residents to improve their home's water quality by providing a financial incentive that can help offset the costs associated with such installations. The tax credit is designed to be applicable for expenses directly incurred by the taxpayer, ensuring that qualified expenses are supported through this initiative. By addressing water quality concerns, the bill signifies an effort by the state to promote public health and environmental safety.
While this bill is poised to benefit many households, potential areas of contention may arise concerning the cap on credits and eligibility criteria for tax claims. Critics may argue that restricting the total credit amount could limit access for lower-income households or those in the greatest need of water filtration solutions. Additionally, there may be discussions surrounding the regulations that would govern how taxpayers claim this credit, especially regarding the verification process to ensure claims are valid. Such dialogues will likely focus on the best approaches to achieve the objectives of public health without imposing undue burdens on taxpayers.