If passed, SB947 would amend existing state tax laws to include a provision specifically for cesspool upgrades or connections. The reinstatement of the cesspool upgrade tax credit is intended to alleviate some financial burdens residents face when upgrading their systems. It also aims to enhance transparency in real estate transactions by mandating that sellers disclose the existence of a cesspool on the property, along with specific details about required upgrades and deadlines. This transparency is expected to protect potential buyers and encourage compliance with state regulations regarding wastewater management.
Summary
Senate Bill 947 addresses the environmental hazards posed by cesspools in Hawaii. With over 80,000 cesspools releasing significant amounts of untreated sewage into the groundwater and surface waters, this bill emphasizes the urgent need for action. It seeks to re-establish a tax credit for cesspool upgrades, conversions, or connections to approved wastewater systems, which had expired on December 31, 2020. The tax credit could provide up to $10,000 per qualified cesspool, assisting homeowners in financing necessary conversions to modern sewage systems.
Contention
While the bill aims to address urgent environmental and health issues, it may also spark debate over its implications. Some individuals and groups may argue that mandatory disclosures could affect property values and sales processes. Furthermore, the cap on the total amount of tax credits available each year at $5 million could lead to concerns regarding fairness and accessibility, as not all homeowners may be able to benefit from the tax credit if demand exceeds the allocated amount. These points could be points of contention during the legislative process.