The proposed legislation introduces an income tax credit which will cover qualified expenses related to the cesspool upgrade, conversion, or connection. This makes it financially easier for homeowners and property owners to comply with state regulations aimed at improving water quality and managing sewage systems more effectively. Notably, the bill includes a mechanism for the Department of Health to certify cesspools and determine the extent of upgrades required, thus ensuring compliance and mitigating negative environmental impacts.
SB2633 seeks to provide financial assistance to owners of cesspools in Hawaii through the establishment of a cesspool upgrade, conversion, or connection income tax credit. This bill is aimed at encouraging owners to upgrade or convert their cesspool systems to wastewater systems approved by the director of health, or to connect their cesspools to existing sewerage systems. The intent is to promote better wastewater management and reduce potential environmental and public health risks associated with cesspool usage.
A significant point of contention surrounding this bill may revolve around the financial implications for the state and taxpayers. The structure of the tax credit includes a cap on the total tax credits allowed for all taxpayers in any taxable year, which raises concerns about the potential budgetary impact. Additionally, the bill stipulates that it will sunset after December 31, 2029, which means it is intended to be a temporary measure that could affect its future applicability and continuity in addressing cesspool issues in Hawaii.