SB 2431 Hawaii Senate · 2026 Regular Session

RELATING TO HEALTH SAVINGS ACCOUNTS.

Summary

For taxable years beginning 1/1/2026, establishes a tiered nonrefundable tax credit for qualified taxpayer insurers that offer one or more federally qualified health savings account-eligible high deductible health plans in the State, under certain conditions, and increasing the tax credit to incentivize more plans being written for residents in rural medically underserved areas of the State. Requires qualified taxpayer insurers to match up to a certain amount of a policyholder's first-time contribution into a health savings account. Sunsets 12/31/2030. Effective 7/1/2050. (SD1)

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Mar 2026

Senate Passage

Mar 2026

House Passage

Governor

Introduced Jan 22, 2026 Last action Mar 18, 2026

Maddy AI version diff · 1 comparison

What changed between versions

SB2431 → SB2431_SD1 · 5 edits

MODERATE

This bill version updates the effective date to July 1, 2050, and clarifies that tax credit incentives apply to plans written for residents of rural or medically underserved areas rather than plans physically written in those locations. It also extends the deadline for claiming the tax credit from 12 months to five years and adds a requirement for insurers to report benefit values to the Department of Taxation.

Scope change

The bill's applicability was modified to focus on the residency of the insured rather than the physical location where the insurance plan is written, expanding the scope of eligible plans.

TIMELINE

The effective date was changed from immediate approval to July 1, 2050, while the repeal date remains December 31, 2030.

ELIGIBILITY

Tax credit incentives now apply to plans written for residents of rural or medically underserved areas, removing the requirement that the plan itself be written in those specific geographic areas.

ENFORCEMENT

The deadline to claim the tax credit was extended from 12 months to five years after the close of the taxable year.

A new requirement mandates that the Department of Taxation adopt rules requiring insurers to report the value of benefits provided to insureds.

DEFINITION

A new definition for 'Rural' was added, defining it as an area not delineated as an urbanized area by the U.S. Census Bureau.

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 12, 2026

Committee

Referred to HLT, CPC, FIN, referral sheet 17

lower

Mar 10, 2026

Introduced

Received from Senate (Sen. Com. No. 239) in amended form (SD 1).

lower

Mar 10, 2026

Upper · Passed

Report adopted; Passed Third Reading. Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House.

upper

Mar 5, 2026

Upper · Passed

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

upper

Mar 4, 2026

Upper · Passed

The committee(s) on WAM has rescheduled its decision making to 03-05-26 12:04PM; CR 211 & Videoconference.

upper

Mar 3, 2026

Upper · Passed

The committee(s) on WAM will hold a public decision making on 03-05-26 10:15AM; Conference Room 211 & Videoconference.

upper

Feb 20, 2026

Upper · Passed

Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.

upper

Feb 20, 2026

Committee

Reported from CPN (Stand. Com. Rep. No. 2549) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Feb 11, 2026

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, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Lamosao.

upper

Feb 5, 2026

Upper · Passed

The committee(s) on CPN has scheduled a public hearing on 02-11-26 9:30AM; CR 229 & Videoconference.

upper

Jan 28, 2026

Committee

Referred to CPN, WAM.

upper

Jan 22, 2026

Introduced

Introduced.

upper

3 primary · 0 co-sponsors