Hawaii House Bill HB690

Hawaii 2025 Regular Session

• Introduced: 1/21/25
• Refer: 1/21/25

Caption

Relating To Taxation.

Impact

Should HB 690 be enacted, it would amend Chapter 235 of the Hawaii Revised Statutes, establishing a formal mechanism for taxpayers to claim a credit against their income tax liabilities. The tax credit amount could be up to $500 and would be available to any resident who meets the criteria for installing water catchment systems or engaging water delivery services. This initiative not only incentivizes sustainable water use practices but also aims to alleviate the economic burdens that accompany inadequate water supply, potentially leading to improved quality of life in the targeted communities.

Summary

House Bill 690, introduced in Hawaii's 33rd Legislature, addresses significant concerns related to water access in under-served communities, particularly the Kaū region of Hawaii Island. This bill aims to foster water conservation efforts by introducing a refundable income tax credit for taxpayers who install or repair water catchment systems or who purchase water delivery services. Recognizing the economic challenges faced by residents in areas with limited access to municipal water infrastructure, the bill seeks to provide financial assistance to promote self-sufficiency and resource management among affected communities.

Contention

There may be concerns regarding the implementation and administration of this tax credit, particularly regarding its uptake among eligible residents. Potential logistical challenges in ensuring that eligible taxpayers are aware of the credit and can effectively navigate the claims process may arise. Additionally, considerations around equity, such as ensuring that the most economically disadvantaged are able to benefit, could also be a point of contention. Overall, while the bill presents promising steps towards enhancing local water resources management, stakeholder discussions may highlight a range of differing perspectives on its broader implications.