If enacted, the bill will amend Chapter 235 of the Hawaii Revised Statutes to incorporate provisions for the income tax credit. The total amount of tax credits allowed under this section shall be capped at $5 million for all taxpayers in any given taxable year, ensuring that the benefit does not exceed state budgetary constraints. Moreover, any taxpayer not able to claim the credit due to this cap can carry it over to subsequent years, allowing for flexibility in its application. This measure would create a fiscal incentive for homeowners, thereby potentially increasing the adoption of environmentally friendly technologies.
House Bill 1709 introduces a new income tax credit aimed at incentivizing the installation of whole house water filter systems in Hawaii. This credit is designed to be available for taxpayers who incur qualified expenses related to the purchase and installation of such systems. By offering this credit, the bill seeks to enhance the quality of drinking water while promoting environmental sustainability through improved water filtration in homes across the state.
The sentiment surrounding HB 1709 is largely positive among its proponents, who argue that it not only contributes to better health outcomes through improved water quality but also encourages responsible environmental practices among homeowners. Supporters believe that tax incentives can stimulate the economy by creating jobs in the water treatment and home improvement sectors. However, there may be some opposition around the fiscal implications of tax credits and whether they adequately support wider environmental goals.
A notable point of contention might arise concerning the overall efficiency and effectiveness of tax credits as a mechanism for encouraging environmental improvements. Critics may question whether the bill's approach could lead to uneven benefits across income brackets, as wealthier households may be more likely to take advantage of the tax incentives compared to lower-income families who may struggle to afford the upfront costs of installing water filter systems.