Hawaii Senate Bill SB768

Hawaii 2025 Regular Session

• Introduced: 1/17/25
• Refer: 1/23/25

Caption

Relating To Taxation.

Impact

If enacted, this bill could significantly impact state tax policy by introducing credits that encourage water conservation practices. It appears to reflect the state's broader environmental goals by promoting sustainable water management. The use of water catchment systems is seen as a cost-effective measure that can also help mitigate flooding and reduce overall demand for treated fresh water. Specifically, the credit incentivizes homeowners to adopt practices that can lead to reduced dependency on municipal water resources and foster self-sufficiency.

Summary

SB768, introduced in the 2025 session of the Hawaii legislature, aims to address water access issues in the state. The bill provides for a refundable income tax credit for taxpayers who install or repair water catchment systems or purchase water delivery services. This is particularly directed at residents in areas where municipal water infrastructure is scarce, providing financial incentives for alternative water sources. The law recognizes the importance of accessible water for public health and local community sustainability, especially in impoverished regions.

Contention

Notably, the bill may spark discussions regarding the cost and implementation of such tax credits, especially concerning the income levels of residents who would qualify. As areas with limited water supply often correlate with poverty, the bill aims to alleviate some economic burdens. Nevertheless, it remains to be seen if the potential $500 credit is sufficient to motivate the necessary changes. In addition, while the bill advocates for water conservation, some stakeholders may express concerns over the long-term sustainability and effectiveness of water catchment systems versus traditional water sources.

Last_action

The bill is set to apply to taxable years beginning after December 31, 2025, allowing time for its implementation and the preparation of necessary forms by the director of taxation.