SB 2884 Hawaii Senate · 2026 Regular Session

RELATING TO TAXATION.

Summary

Establishes a nonrefundable individual income tax credit for a certain percentage of expenses paid to retrofit a residence with wind resistive devices or to purchase, install, or construct, a hurricane shelter on the taxpayer's property. Reduces the general excise tax rate on the gross proceeds or income from the sale of a concrete high-rise certified hurricane-resistant residential project or certain hurricane-resistant components of the project. Applies to taxable years beginning after 12/31/2026. Sunsets 12/31/2030. Effective 7/1/2050. (SD1)

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Feb 2026

Senate Passage

Feb 2026

House Passage

Governor

Introduced Jan 23, 2026 Last action Feb 20, 2026

Maddy AI version diff · 1 comparison

What changed between versions

SB2884 → SB2884_SD1 · 5 edits

MODERATE

This bill was transitioned from a Senate draft to a Senate Committee version (SD1), which includes significant substantive changes to the tax incentive program. The most critical change is the effective date, which was delayed from January 1, 2027, to July 1, 2050, while the sunset date remains 2030. Additionally, the bill now explicitly defines 'hurricane shelters' and 'incremental costs' to ensure tax credits are only awarded for specific, certified wind-resistant upgrades rather than general concrete construction.

Scope change

The bill's applicability was drastically altered by changing the effective date to July 1, 2050, creating a gap where the tax incentives are not active despite the program being scheduled to end in 2030.

TIMELINE

The effective date for the tax incentives was changed from January 1, 2027, to July 1, 2050, which means the program will not be active for the majority of its intended lifespan.

DEFINITION

New definitions were added for 'hurricane shelter' (requiring it to meet specific FEMA standards) and 'incremental cost' (defining exactly how the extra expense for wind-resistant materials is calculated).

REQUIREMENT

The definition of 'hurricane shelter' was expanded to require certification that the room meets specific wind speed and debris impact resistance standards.

A new definition for 'related structural components' was added to clarify that these parts must be necessary for meeting wind-resistance standards.

ELIGIBILITY

The bill now explicitly includes the fortification of high-rise apartment and condominium buildings as an eligible activity for tax incentives.

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

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. 2652) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Feb 18, 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, Lamosao, Awa; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) McKelvey.

upper

Feb 13, 2026

Upper · Passed

The committee(s) on CPN has scheduled a public hearing on 02-18-26 9:30AM; Conference Room 229 & Videoconference.

upper

Jan 30, 2026

Committee

Referred to CPN, WAM.

upper

Jan 23, 2026

Introduced

Introduced.

upper

1 primary · 0 co-sponsors