HB 2079 Hawaii House · 2026 Regular Session

RELATING TO CESSPOOLS.

HB 2079 reestablishes a state income tax credit for property owners who upgrade, convert, or connect their cesspools (sewage disposal systems) to public sewer lines or alternative systems. This tax credit applies to taxable years beginning after December 31, 2026, directly benefiting homeowners and businesses in areas reliant on cesspools. The key provision is the reinstatement of a financial incentive to encourage the replacement of older cesspools, which are often environmentally concerning. The bill does not create new regulations but provides a tax benefit for specific infrastructure upgrades. It is currently pending committee review for potential passage.

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2026

Committee Review

Floor Vote

Governor

Introduced Jan 23, 2026 Last action Feb 18, 2026

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What changed between versions

HB2079 → HB2079_HD1 · 5 edits

MODERATE

This bill amends the cesspool tax credit program by increasing the credit percentage from 35% to 100% of qualified expenses and raising the maximum credit cap to $10,000 per property. It also broadens eligibility to include any director of health-approved wastewater system, not just septic or aerobic treatment units, and changes the refund mechanism to allow direct refunds for taxpayers with no tax liability. The effective date was significantly delayed from July 1, 2026, to July 1, 3000, likely indicating a placeholder or error in the draft.

Scope change

The bill's scope expanded to cover any director of health-approved wastewater system, moving beyond the previous restriction to only septic or aerobic treatment units.

FISCAL

The income tax credit rate was increased from 35% to 100% of qualified expenses.

The maximum credit cap was raised to $10,000 per property.

ELIGIBILITY

Eligible systems now include any director of health-approved wastewater system, expanding options beyond septic or aerobic treatment units.

REQUIREMENT

The refund process was updated to allow direct refunds for taxpayers with no tax liability, rather than carrying the credit forward.

TIMELINE

The effective date was changed from July 1, 2026, to July 1, 3000.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 18, 2026

Committee

Reported from EEP (Stand. Com. Rep. No. 386-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN.

lower

Feb 5, 2026

Lower · Passed

The committee on EEP recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Lowen, Perruso, Chun, Kahaloa, Kusch, Quinlan, Matsumoto; Ayes with reservations: none; Noes: none; and Excused: none.

lower

Jan 30, 2026

Committee

Re-referred to EEP, FIN, referral sheet 5

lower

Jan 28, 2026

Committee

Referred to EEP, WAL, FIN, referral sheet 3

lower

Jan 26, 2026

Introduced

Introduced and Pass First Reading.

lower

Jan 23, 2026

Introduced

Pending introduction.

lower

1 primary · 0 co-sponsors