The bill proposes two significant changes to existing laws. Firstly, it aims to re-establish the cesspool upgrade, conversion, or connection income tax credit that had expired at the end of 2020, thereby incentivizing property owners to upgrade their cesspools to approved wastewater systems. This tax credit could greatly assist residents financially, providing up to $10,000 for eligible expenses. Secondly, the bill mandates disclosure for real property transactions regarding the existence of cesspools, including required upgrade timelines and prioritization levels for cesspool conversion based on health assessments.
House Bill 440 aims to address the critical issue of cesspools in Hawaii, which are responsible for significant environmental pollution and public health concerns due to the disposal of untreated sewage. With over eighty thousand cesspools estimated to release fifty million gallons of raw sewage daily, the legislation seeks to implement measures to mitigate this problem. It follows recommendations from the cesspool conversion working group, created in 2018 to address cesspool pollution collaboratively.
There may be varying opinions regarding the financial impact of this bill, specifically in relation to the costs of cesspool upgrades and the implications for property sales. Advocates argue that mandated disclosures will protect potential buyers from unforeseen environmental and health liabilities, fostering a more informed real estate market. Conversely, some property owners might perceive the required upgrades and disclosures as a financial burden, leading to concerns about property values and marketability in areas with high cesspool prevalence.