SB 3061: Taxation; Income Tax Credits; Sunset; Exceptions

A BILL FOR AN ACT

RELATING TO TAX CREDITS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The purpose of this Act is to require income tax credits existing on December 31, 2026, to include a four‑year sunset; and for credits established or renewed after December 31, 2026, to include a seven-year sunset.

     SECTION 2.  Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

     "§235-     Tax credits; generally.  Notwithstanding any other provision of this chapter to the contrary:

     (1)  Any income tax credit existing under this chapter on December 31, 2026, shall sunset on December 31, 2030; and

     (2)  Any income tax credit established or renewed under this chapter after December 31, 2026, shall sunset seven years after the date of reenactment or renewal of the tax credit;

provided that this section shall not apply to section 235-15 or income tax credits codified under part III of this chapter."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

Report Title:

Taxation; Income Tax Credits; Sunset; Exceptions

Description:

Requires that income tax credits existing on 12/31/2026 include a sunset on 12/31/2030.  Requires that income tax credits established or renewed after 12/31/2026 include a sunset 7 years after the date of enactment or renewal of the tax credit.  Provides for exceptions.

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