Hawaii 2024 Regular Session

Hawaii Senate Bill SB2633 Compare Versions

Only one version of the bill is available at this time.

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1	1	THE SENATE S.B. NO. 2633 THIRTY-SECOND LEGISLATURE, 2024 STATE OF HAWAII A BILL FOR AN ACT relating to cesspools. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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3	3	THE SENATE S.B. NO. 2633
4	4	THIRTY-SECOND LEGISLATURE, 2024
5	5	STATE OF HAWAII
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7	7	THE SENATE
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9	9	S.B. NO.
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11	11	2633
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13	13	THIRTY-SECOND LEGISLATURE, 2024
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17	17	STATE OF HAWAII
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31	31	A BILL FOR AN ACT
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37	37	relating to cesspools.
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43	43	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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47	47	SECTION 1. The purpose of this Act is to offer financial assistance to owners of cesspools who: (1) Upgrade or convert a qualified cesspool to a wastewater system approved by the director of health; or (2) Connect a qualified cesspool to a sewerage system, by establishing a cesspool upgrade, conversion, or connection income tax credit. SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows: "§235- Cesspool upgrade, conversion, or connection income tax credit. (a) There shall be allowed to each taxpayer subject to the tax imposed under this chapter, a cesspool upgrade, conversion, or connection income tax credit that shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed. (b) In the case of a partnership, S corporation, estate, or trust, the tax credit allowable is for qualified expenses incurred by the entity for the taxable year. The qualified expenses upon which the tax credit is computed shall be determined at the entity level. Distribution and share of credit shall be determined by rule. (c) The cesspool upgrade, conversion, or connection income tax credit shall be equal to the qualified expenses of the taxpayer, up to a maximum of $ ; provided that, in the case of a qualified cesspool that is a residential large capacity cesspool, the amount of the credit shall be equal to the qualified expenses of the taxpayer, up to a maximum of $ per residential dwelling connected to the qualified cesspool, as certified by the department of health pursuant to subsection (e). There shall be allowed a maximum of one cesspool upgrade, conversion, or connection income tax credit per qualified cesspool. The cesspool upgrade, conversion, or connection income tax credit shall be available only for the taxable year in which the taxpayer's qualified expenses are certified by the appropriate government agency. (d) The total amount of tax credits allowed under this section shall not exceed $ for all taxpayers in any taxable year; provided that any taxpayer who is not eligible to claim the credit in a taxable year due to the $ cap having been exceeded for that taxable year shall be eligible to claim the credit in the subsequent taxable year. (e) The department of health shall: (1) Certify all qualified cesspools for the purposes of this section; (2) Collect and maintain a record of all qualified expenses certified for the taxable year; and (3) Certify to each taxpayer the amount of credit the taxpayer may claim; provided that if, in any year, the annual amount of certified credits reaches $ in the aggregate, the department of health shall immediately discontinue certifying credits and notify the department of taxation. The director of health may adopt rules under chapter 91 as necessary to implement the certification requirements under this section. (f) The director of taxation: (1) Shall prepare any forms that may be necessary to claim a tax credit under this section; (2) May require the taxpayer to furnish reasonable information to ascertain the validity of the claim for the tax credit made under this section; and (3) May adopt rules pursuant to chapter 91 necessary for the purposes of this section. (g) If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of the credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted. All claims for the tax credit under this section, including amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit. (h) This section shall not apply to taxable years beginning after December 31, 2029. (i) As used in this section: "Cesspool" has the same meaning as in section 342D-72. "Qualified cesspool" means a cesspool that is: (1) Certified by the department of health to be: (A) Located within: (i) Five hundred feet of a shoreline, perennial stream, or wetland; or (ii) A source water assessment program area (two year time of travel from a cesspool to a public drinking water source); (B) Shown to impact drinking water supplies or recreational waters; or (C) A residential large capacity cesspool; or (2) Certified by a county or private sewerage company to be appropriate for connection to its existing sewerage system. "Qualified expenses" means costs that are necessary and directly incurred by the taxpayer for upgrading or converting a qualified cesspool into a wastewater system approved by the director of health, or connecting a qualified cesspool to a sewerage system, and that are certified as such by the department of health. "Residential large capacity cesspool" means a cesspool that is connected to more than one residential dwelling. "Sewerage system" means a system of piping, with appurtenances, for collecting and conveying wastewater from source to discharge following treatment. "Wastewater" means any liquid waste, whether or not treated and whether animal, mineral, or vegetable, including agricultural, industrial, and thermal wastes." SECTION 3. New statutory material is underscored. SECTION 4. This Act shall take effect on July 1, 2024, and shall apply to taxable years beginning after December 31, 2024; provided that this Act shall be repealed on December 31, 2029. INTRODUCED BY: _____________________________
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49	49	SECTION 1. The purpose of this Act is to offer financial assistance to owners of cesspools who:
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51	51	(1) Upgrade or convert a qualified cesspool to a wastewater system approved by the director of health; or
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53	53	(2) Connect a qualified cesspool to a sewerage system,
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55	55	by establishing a cesspool upgrade, conversion, or connection income tax credit.
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57	57	SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:
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59	59	"§235- Cesspool upgrade, conversion, or connection income tax credit. (a) There shall be allowed to each taxpayer subject to the tax imposed under this chapter, a cesspool upgrade, conversion, or connection income tax credit that shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.
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61	61	(b) In the case of a partnership, S corporation, estate, or trust, the tax credit allowable is for qualified expenses incurred by the entity for the taxable year. The qualified expenses upon which the tax credit is computed shall be determined at the entity level. Distribution and share of credit shall be determined by rule.
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63	63	(c) The cesspool upgrade, conversion, or connection income tax credit shall be equal to the qualified expenses of the taxpayer, up to a maximum of $ ; provided that, in the case of a qualified cesspool that is a residential large capacity cesspool, the amount of the credit shall be equal to the qualified expenses of the taxpayer, up to a maximum of $ per residential dwelling connected to the qualified cesspool, as certified by the department of health pursuant to subsection (e). There shall be allowed a maximum of one cesspool upgrade, conversion, or connection income tax credit per qualified cesspool. The cesspool upgrade, conversion, or connection income tax credit shall be available only for the taxable year in which the taxpayer's qualified expenses are certified by the appropriate government agency.
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65	65	(d) The total amount of tax credits allowed under this section shall not exceed $ for all taxpayers in any taxable year; provided that any taxpayer who is not eligible to claim the credit in a taxable year due to the $ cap having been exceeded for that taxable year shall be eligible to claim the credit in the subsequent taxable year.
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67	67	(e) The department of health shall:
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69	69	(1) Certify all qualified cesspools for the purposes of this section;
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71	71	(2) Collect and maintain a record of all qualified expenses certified for the taxable year; and
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73	73	(3) Certify to each taxpayer the amount of credit the taxpayer may claim; provided that if, in any year, the annual amount of certified credits reaches $ in the aggregate, the department of health shall immediately discontinue certifying credits and notify the department of taxation.
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75	75	The director of health may adopt rules under chapter 91 as necessary to implement the certification requirements under this section.
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77	77	(f) The director of taxation:
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79	79	(1) Shall prepare any forms that may be necessary to claim a tax credit under this section;
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81	81	(2) May require the taxpayer to furnish reasonable information to ascertain the validity of the claim for the tax credit made under this section; and
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83	83	(3) May adopt rules pursuant to chapter 91 necessary for the purposes of this section.
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85	85	(g) If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of the credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted. All claims for the tax credit under this section, including amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.
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87	87	(h) This section shall not apply to taxable years beginning after December 31, 2029.
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89	89	(i) As used in this section:
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91	91	"Cesspool" has the same meaning as in section 342D-72.
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93	93	"Qualified cesspool" means a cesspool that is:
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95	95	(1) Certified by the department of health to be:
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97	97	(A) Located within:
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99	99	(i) Five hundred feet of a shoreline, perennial stream, or wetland; or
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101	101	(ii) A source water assessment program area (two year time of travel from a cesspool to a public drinking water source);
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103	103	(B) Shown to impact drinking water supplies or recreational waters; or
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105	105	(C) A residential large capacity cesspool; or
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107	107	(2) Certified by a county or private sewerage company to be appropriate for connection to its existing sewerage system.
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109	109	"Qualified expenses" means costs that are necessary and directly incurred by the taxpayer for upgrading or converting a qualified cesspool into a wastewater system approved by the director of health, or connecting a qualified cesspool to a sewerage system, and that are certified as such by the department of health.
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111	111	"Residential large capacity cesspool" means a cesspool that is connected to more than one residential dwelling.
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113	113	"Sewerage system" means a system of piping, with appurtenances, for collecting and conveying wastewater from source to discharge following treatment.
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115	115	"Wastewater" means any liquid waste, whether or not treated and whether animal, mineral, or vegetable, including agricultural, industrial, and thermal wastes."
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117	117	SECTION 3. New statutory material is underscored.
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119	119	SECTION 4. This Act shall take effect on July 1, 2024, and shall apply to taxable years beginning after December 31, 2024; provided that this Act shall be repealed on December 31, 2029.
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123	123	INTRODUCED BY: _____________________________
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149	149	Report Title: Income Tax Credit; Cesspool Upgrade, Conversion, or Connection Description: For taxable years beginning after 12/31/2024, provides a temporary income tax credit for the cost of upgrading or converting a qualified cesspool to a wastewater system approved by the director of health, or connecting to a sewerage system. Sunsets 12/31/2029. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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157	157	Income Tax Credit; Cesspool Upgrade, Conversion, or Connection
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161	161	Description:
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163	163	For taxable years beginning after 12/31/2024, provides a temporary income tax credit for the cost of upgrading or converting a qualified cesspool to a wastewater system approved by the director of health, or connecting to a sewerage system. Sunsets 12/31/2029.
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171	171	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.