SB 338 Hawaii Senate · 2025 Regular Session

RELATING TO TAXATION.

Summary

For taxable years beginning after 12/31/2025, temporarily reinstates the Technology Infrastructure Renovation Tax Credit and expands the definition of "technology-enabled infrastructure" to include data servers. Requires the Department of Taxation to submit a report to the Legislature. Effective 7/1/3000. (HD1)

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Mar 2025

Senate Passage

Mar 2025

House Passage

Governor

Introduced Jan 14, 2025 Last action Mar 21, 2025

Maddy AI version diff · 3 comparisons

What changed between versions

SB338_SD1 → SB338_SD2 · 4 edits

MODERATE

This bill temporarily reinstates Hawaii's technology infrastructure renovation tax credit and expands its definition to include data servers, addressing recent data outages that disrupted businesses and government services. The changes ensure continued investment in critical data storage systems that protect against weather and cybersecurity threats.

Scope change

The bill expands eligibility to include data servers under 'technology-enabled infrastructure' and extends the tax credit availability period

DEFINITION

Added 'data servers' to the definition of technology-enabled infrastructure, including computer systems designed for data storage, retrieval, and management

TIMELINE

Extended the tax credit availability period to include taxable years beginning after December 31, 2027, with the credit taking effect July 1, 2050

REQUIREMENT

Added a new subsection requiring taxpayers claiming this credit to not claim any other credits under the same chapter for taxable years beginning before January 1, 2026

Updated the definition of renovation costs to clarify the scope of eligible activities including planning, design, installation, construction, repair, replacement, monitoring, testing, or purchase of technology-enabled infrastructure

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 21, 2025

Committee

Reported from ECD (Stand. Com. Rep. No. 1444) as amended in HD 1, recommending passage on Second Reading and referral to FIN.

lower

Mar 19, 2025

Lower · Passed

The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Ilagan, Hussey, Holt, Tam, Templo, Todd, Matsumoto; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.

lower

Mar 6, 2025

Committee

Referred to ECD, FIN, referral sheet 19

lower

Mar 4, 2025

Introduced

Received from Senate (Sen. Com. No. 137) in amended form (SD 2).

lower

Mar 4, 2025

Upper · Passed

Report Adopted; Passed Third Reading, as amended (SD 2). Ayes, 23; Aye(s) with reservations: Senator(s) McKelvey. Noes, 1 (Senator(s) Awa). Excused, 1 (Senator(s) Chang). Transmitted to House.

upper

Feb 26, 2025

Upper · Passed

The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

Feb 24, 2025

Upper · Passed

The committee(s) on WAM will hold a public decision making on 02-26-25 10:04AM; Conference Room 211 & Videoconference.

upper

Feb 12, 2025

Committee

Reported from LBT (Stand. Com. Rep. No. 357) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Feb 7, 2025

Upper · Passed

The committee(s) on LBT recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in LBT were as follows: 3 Aye(s): Senator(s) Aquino, Lee, C., Moriwaki; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Ihara, Fevella.

upper

Feb 4, 2025

Upper · Passed

The committee(s) on LBT has scheduled a public hearing on 02-07-25 3:00PM; Conference Room 224 & Videoconference.

upper

Jan 21, 2025

Committee

Referred to LBT, WAM.

upper

Jan 15, 2025

Introduced

Introduced and passed First Reading.

upper

Jan 14, 2025

Introduced

Pending Introduction.

upper

3 primary · 1 co-sponsor