SB 376 Hawaii Senate · 2025 Regular Session

RELATING TO TAX CREDITS.

Summary

Establishes a nonrefundable income tax credit for taxpayers who construct or install improvements to their residence that increase the residence's fire safety rating as calculated by the taxpayer's homeowner's insurance policy. Applies to taxable years beginning after 12/31/2025. Effective 7/1/2077. (SD1)

Issues: ✓ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 14, 2025 Last action Feb 14, 2025

Maddy AI version diff · 1 comparison

What changed between versions

SB376 → SB376_SD1 · 7 edits

MODERATE

The bill was revised from a draft version to a Senate Draft 1 version, incorporating substantive policy changes including making the tax credit nonrefundable, adding a new third-party certification requirement instead of insurance commissioner certification, and adding a prohibition against claiming other credits for the same costs. The revision also includes new definitions for qualified costs and qualified home fire safety improvements, and adds a sunset provision preventing claims for costs incurred before January 1, 2026.

Scope change

The bill's scope was modified to include a third-party certification requirement for qualified improvements instead of insurance commissioner certification, and to prohibit taxpayers from claiming other tax credits for the same qualified costs.

ELIGIBILITY

The tax credit was changed from refundable to nonrefundable, meaning it can only offset tax liability and cannot result in a refund if the credit exceeds the tax owed.

Added a prohibition preventing taxpayers from claiming any other tax credit under the same chapter for the same qualified costs used to claim this credit.

REQUIREMENT

Added a requirement that a third party must provide a certificate of approval for qualified home fire safety improvements, replacing the previous insurance commissioner certification requirement.

DEFINITION

Added new statutory definitions for 'qualified costs' and 'qualified home fire safety improvement' to clarify what expenses and improvements qualify for the credit.

ENFORCEMENT

Added provisions allowing the director of taxation to require reasonable information from taxpayers to verify claims and to adopt rules pursuant to chapter 91 to effectuate the purposes of the section.

TIMELINE

Added a provision stating the section shall not apply to any amount paid or incurred before January 1, 2026.

TECHNICAL

Removed placeholder text for specific dollar amounts and percentages that were present in the original draft but left blank in the revised version.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 14, 2025

Committee

Reported from PSM/CPN (Stand. Com. Rep. No. 550) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Feb 5, 2025

Upper · Passed

The committee(s) on CPN recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in CPN were as follows: 4 Aye(s): Senator(s) Keohokalole, Fukunaga, McKelvey, Richards; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Awa.

upper

Feb 5, 2025

Upper · Passed

The committee(s) on PSM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in PSM were as follows: 4 Aye(s): Senator(s) Elefante, Wakai, Fukunaga, DeCorte; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Rhoads.

upper

Jan 31, 2025

Upper · Passed

The committee(s) on PSM/CPN has scheduled a public hearing on 02-05-25 9:30AM; Conference Room 229 & Videoconference.

upper

Jan 21, 2025

Committee

Referred to PSM/CPN, WAM.

upper

Jan 15, 2025

Introduced

Introduced and passed First Reading.

upper

Jan 14, 2025

Introduced

Pending Introduction.

upper

5 primary · 2 co-sponsors