This legislation introduces a cap of $5,000,000 on the total amount of tax credits that can be claimed in any given taxable year, ensuring a limit on the financial impact to the state treasury. In cases where the cap is exceeded, taxpayers would be allowed to carry over their claims to future taxable years. The act signifies a proactive approach by the state to enhance public health safety measures, especially in areas where water quality may be a concern.
Summary
SB630 is an act aimed at providing an income tax credit to taxpayers who purchase and install a whole house water filter system in their homes. The bill amends Chapter 235 of the Hawaii Revised Statutes to introduce this new tax credit, which allows taxpayers to deduct a percentage of their qualified expenses related to the installation of such filtering systems from their net income tax liability. The intent is to promote environmental health and access to clean water throughout the state by incentivizing the installation of water purification systems in residential buildings.
Contention
While the bill is largely seen as a positive step towards improving residential water quality, there may be discussions regarding the methods of determining qualified expenses and how equitably they can be accessed by different income groups. Stakeholders such as environmental advocacy groups may argue about the effectiveness of tax credits compared to direct funding for community water filtration improvements. This could also lead to debates on whether the cap on credits might dissuade potential applicants or limit the program's intended reach.