Hawaii 2025 Regular Session

Hawaii House Bill HB1341 Compare Versions

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

Old	New	Differences
1	1	HOUSE OF REPRESENTATIVES H.B. NO. 1341 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII A BILL FOR AN ACT relating to insurance. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
2	2
3	3	HOUSE OF REPRESENTATIVES H.B. NO. 1341
4	4	THIRTY-THIRD LEGISLATURE, 2025
5	5	STATE OF HAWAII
6	6
7	7	HOUSE OF REPRESENTATIVES
8	8
9	9	H.B. NO.
10	10
11	11	1341
12	12
13	13	THIRTY-THIRD LEGISLATURE, 2025
14	14
15	15
16	16
17	17	STATE OF HAWAII
18	18
19	19
20	20
21	21
22	22
23	23
24	24
25	25
26	26
27	27
28	28
29	29
30	30
31	31	A BILL FOR AN ACT
32	32
33	33
34	34
35	35
36	36
37	37	relating to insurance.
38	38
39	39
40	40
41	41
42	42
43	43	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
44	44
45	45
46	46
47	47	SECTION 1. The legislature finds that condominiums play a vital role in Hawaii's economy and housing. According to the department of commerce and consumers affairs, Hawaii had 1,826 condominium associations representing 173,036 units in 2021. Hundreds of condominium buildings are aged and in need of repair. Due to deferred maintenance, aged condominium buildings are rejected by standard insurers and choose insurers on the secondary market with more expensive premiums. The legislature further finds that recent rate increases for hurricane insurance policies have caused the condominium associations to opt for less than full coverage. Because federally insured lending programs such as Fannie Mae and Freddie Mac require insurance with one hundred per cent of the insurable value coverage, people of Hawaii are unable to buy, sell, or obtain a mortgage for condominium units. Through incentivizing insurers to provide full coverage to condominiums, Hawaii residents would have better access to financing when buying a home in the State and gain homeownership in their communities. The purpose of this Act is to establish tax credits for insurers providing full property coverage to owners and associations of condominiums in the amount equal to twenty per cent of the insurance premium, and to incentivize local insurers by providing additional ten per cent tax credits. SECTION 2. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows: "§431-_ Tax credit for condominium insurance policies. (a) Each insurer that provides full property coverage amounting to one hundred per cent of the insurable value, to specifically include coverage for windstorm, hurricane, hail, flood, fire and localized perils, to owners and associations of condominiums as defined under section 514B-3 within the State, may claim as a nonrefundable tax credit under this section against the tax imposed by section 431:7-202. The tax credit shall be an amount equal to twenty per cent of the insurance premium tax otherwise due on the premium for the taxable year; and thirty per cent of the insurance premium tax otherwise due on the premium written by insurers incorporated in the State. The aggregate amount of all tax credits in any tax year that may be claimed by insurers pursuant to this section shall not exceed $5,000,000. (b) The tax credit under this section is available only to an insurer licensed or authorized to do business in the State with respect to a property and casualty insurance policy providing full coverage as defined in subsection (a). (c) The tax credit allowed under this section for a taxable year may be claimed only once for any one structure, regardless of the number of policies written on the structure. (d) An insurer who claims the tax credit under this section shall provide information required by the commissioner to demonstrate that the taxpayer is eligible for the tax credit and that the amount paid for premiums for which the tax credit is claimed was not excluded from the insurer's gross income for the taxable year. The commissioner shall establish a process for which insurers may make an application for a tax credit certificate to claim any tax credit provided for by this section. The tax credit certificate issued by the commissioner shall reserve the appropriate allocation of tax credits for the insurer to which a certificate is issued. An insurer seeking such certificate for reservation of tax credits for the writing of a policy pursuant to subsection (a) shall make application to the commissioner. The commissioner shall review the applications received and subsequently issue a tax credit certificate to the insurer reserving the appropriate allocation of tax credits for the insurer. The commissioner shall reserve the tax credits provided for by this section in the order in which the commissioner receives the application for tax credit certificates, and for the benefit of the appropriate insurer, provided the application is approved by the commissioner. (e) The commissioner shall prepare the forms necessary to claim a tax credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91. (f) All claims for the tax credit under this section, including any amended claims, must be filed on or before the end of the twelfth month following the close of the taxable year for which the tax credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the tax credit. (g) The commissioner shall take the action necessary to monitor and examine the use of the tax credit claims under this section." SECTION 3. New statutory material is underscored. SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2025. INTRODUCED BY: _____________________________
48	48
49	49	SECTION 1. The legislature finds that condominiums play a vital role in Hawaii's economy and housing. According to the department of commerce and consumers affairs, Hawaii had 1,826 condominium associations representing 173,036 units in 2021. Hundreds of condominium buildings are aged and in need of repair. Due to deferred maintenance, aged condominium buildings are rejected by standard insurers and choose insurers on the secondary market with more expensive premiums.
50	50
51	51	The legislature further finds that recent rate increases for hurricane insurance policies have caused the condominium associations to opt for less than full coverage. Because federally insured lending programs such as Fannie Mae and Freddie Mac require insurance with one hundred per cent of the insurable value coverage, people of Hawaii are unable to buy, sell, or obtain a mortgage for condominium units. Through incentivizing insurers to provide full coverage to condominiums, Hawaii residents would have better access to financing when buying a home in the State and gain homeownership in their communities.
52	52
53	53	The purpose of this Act is to establish tax credits for insurers providing full property coverage to owners and associations of condominiums in the amount equal to twenty per cent of the insurance premium, and to incentivize local insurers by providing additional ten per cent tax credits.
54	54
55	55	SECTION 2. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
56	56
57	57	"§431-_ Tax credit for condominium insurance policies. (a) Each insurer that provides full property coverage amounting to one hundred per cent of the insurable value, to specifically include coverage for windstorm, hurricane, hail, flood, fire and localized perils, to owners and associations of condominiums as defined under section 514B-3 within the State, may claim as a nonrefundable tax credit under this section against the tax imposed by section 431:7-202. The tax credit shall be an amount equal to twenty per cent of the insurance premium tax otherwise due on the premium for the taxable year; and thirty per cent of the insurance premium tax otherwise due on the premium written by insurers incorporated in the State. The aggregate amount of all tax credits in any tax year that may be claimed by insurers pursuant to this section shall not exceed $5,000,000.
58	58
59	59	(b) The tax credit under this section is available only to an insurer licensed or authorized to do business in the State with respect to a property and casualty insurance policy providing full coverage as defined in subsection (a).
60	60
61	61	(c) The tax credit allowed under this section for a taxable year may be claimed only once for any one structure, regardless of the number of policies written on the structure.
62	62
63	63	(d) An insurer who claims the tax credit under this section shall provide information required by the commissioner to demonstrate that the taxpayer is eligible for the tax credit and that the amount paid for premiums for which the tax credit is claimed was not excluded from the insurer's gross income for the taxable year. The commissioner shall establish a process for which insurers may make an application for a tax credit certificate to claim any tax credit provided for by this section. The tax credit certificate issued by the commissioner shall reserve the appropriate allocation of tax credits for the insurer to which a certificate is issued. An insurer seeking such certificate for reservation of tax credits for the writing of a policy pursuant to subsection (a) shall make application to the commissioner. The commissioner shall review the applications received and subsequently issue a tax credit certificate to the insurer reserving the appropriate allocation of tax credits for the insurer. The commissioner shall reserve the tax credits provided for by this section in the order in which the commissioner receives the application for tax credit certificates, and for the benefit of the appropriate insurer, provided the application is approved by the commissioner.
64	64
65	65	(e) The commissioner shall prepare the forms necessary to claim a tax credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91.
66	66
67	67	(f) All claims for the tax credit under this section, including any amended claims, must be filed on or before the end of the twelfth month following the close of the taxable year for which the tax credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the tax credit.
68	68
69	69	(g) The commissioner shall take the action necessary to monitor and examine the use of the tax credit claims under this section."
70	70
71	71	SECTION 3. New statutory material is underscored.
72	72
73	73	SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2025.
74	74
75	75
76	76
77	77	INTRODUCED BY: _____________________________
78	78
79	79	INTRODUCED BY:
80	80
81	81	_____________________________
82	82
83	83
84	84
85	85
86	86
87	87	Report Title: Condominiums; Insurer; Tax Credit; Hurricane Insurance Description: Establishes tax credits for insurers providing full property coverage to owners and associations of condominiums in the amount equal to twenty per cent of the insurance premium. Provides additional ten per cent tax credits to insurers incorporated in the State. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
88	88
89	89
90	90
91	91
92	92
93	93	Report Title:
94	94
95	95	Condominiums; Insurer; Tax Credit; Hurricane Insurance
96	96
97	97
98	98
99	99	Description:
100	100
101	101	Establishes tax credits for insurers providing full property coverage to owners and associations of condominiums in the amount equal to twenty per cent of the insurance premium. Provides additional ten per cent tax credits to insurers incorporated in the State.
102	102
103	103
104	104
105	105
106	106
107	107
108	108
109	109	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.