Budget & Taxes (Tax Incentives)

passed · Hawaii · Senate Feb 20, 2026

SB 2741: RELATING TO THE GENERAL EXCISE TAX.

SB 2741 would gradually remove the state's general excise tax from locally produced food items, such as farm-fresh produce and meals prepared by local restaurants. The bill phases in this tax exemption over time, starting with certain food categories and expanding to others in subsequent years. This change directly affects local food producers (like farms and small eateries) and consumers purchasing these items, reducing their tax burden. The bill is currently in early stages (introduced January 23, 2026) and has not yet been voted on by the legislature.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill removes tax on local food, reducing state revenue and weakening tax base without offsetting measures.90% confidence

Sub-Topics Procurement Sales Tax Tax Incentives

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passed · Hawaii · House Mar 17, 2026

HB 1612: RELATING TO ECONOMIC DEVELOPMENT.

Establishes a business competitiveness goal for the State to be nationally ranked in the top thirty states for business climate by 2050, with interim goals. Requires the Department of Business, Economic Development, and Tourism to submit annual progress reports to the Legislature. Appropriates funds. Effective 7/1/3000. (HD1)

Topics ✓ Budget & TaxesSupports Budget & TaxesAppropriates funds for business competitiveness goals, aligning with fiscal responsibility and economic development funding initiatives.90% confidence

Sub-Topics Business Taxes Tax Incentives Tags Economic Development

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signed · Hawaii · House Jul 9, 2026

HB 2385: RELATING TO HOUSING.

Beginning 1/1/2027, authorizes the Hawaii Housing Finance and Development Corporation, instead of the counties, to approve and certify general excise tax exemptions for certain housing development projects developed under county housing incentive programs. Sunsets 7/1/2031. (CD1)

Topics ✓ Budget & TaxesSupports Budget & TaxesAuthorizes tax exemptions for housing projects, reducing tax burden on developers to advance affordable housing through fiscal incentives, aligning with tax relief for development programs.85% confidence ✓ HousingSupports HousingAuthorizes tax exemptions for housing development projects under incentive programs, reducing costs to increase affordable housing supply.95% confidence

Sub-Topics Sales Tax Tax Incentives Affordable Housing Housing Finance Property Taxes

passed · Hawaii · Senate Dec 8, 2025

SB 1468: RELATING TO GENERAL EXCISE TAX EXEMPTIONS.

Repeals the general excise tax exemption for amounts received by independent sugar cane farmers. Repeals the general excise tax exemption for amounts received by a contractor of the Patient-Centered Community Care Program that is established by the United States Department of Veterans Affairs pursuant to title 38 United States Code section 8153. Effective 1/1/2026. (SD1)

Topics ✗ Budget & TaxesOpposes Budget & TaxesRepeals tax exemptions for sugar cane farmers and VA program contractors, increasing tax burden. Directly restricts tax exemptions per Budget & Taxes topic.95% confidence ✗ HealthcareOpposes HealthcareRepeals tax exemption for VA Patient-Centered Community Care Program contractors, increasing costs and potentially restricting program effectiveness.85% confidence ✗ VeteransOpposes VeteransRepealing tax exemption for VA's PCCP contractors may reduce program funding/access, weakening veteran healthcare support under 38 U.S.C. § 8153.85% confidence

Sub-Topics Sales Tax Tax Incentives

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in committee · Hawaii · House Dec 8, 2025

HB 232: RELATING TO TAXATION.

Requires the department of taxation to establish a two-year pilot program that reduces the income tax liability for certain residents within the 96792 postal zip code on the island of Oahu. Establishes eligibility and reporting requirements. Repeals 12/31/2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces income tax liability for residents in 96792 zip code, providing targeted tax relief as a pilot program.95% confidence

Sub-Topics Income Tax Tax Incentives

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in committee · Hawaii · House Feb 2, 2026

HB 2555: RELATING TO GENERAL EXCISE TAX.

Exempts food and groceries from the general excise tax. Expands the general excise tax exemption implemented in 2024 for certain medical and dental services to include all medical and dental services.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts food, groceries, and medical services from general excise tax, providing tax relief for essential household expenses.95% confidence ✓ HealthcareSupports HealthcareExpands tax exemption for all medical/dental services, reducing out-of-pocket costs and improving access to healthcare services.95% confidence

Sub-Topics Sales Tax Tax Incentives

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passed · Hawaii · Senate Feb 19, 2026

SB 2676: RELATING TO HOUSING.

Authorizes the Hawaii Housing Finance and Development Corporation to approve and certify general excise tax exemptions, including for non-contracting costs, for certain housing development projects developed under county housing incentive programs. Makes conforming amendments. Sunsets 7/1/2031. Effective 7/1/2050. (SD1)

Topics ✓ Budget & TaxesSupports Budget & TaxesBill authorizes general excise tax exemptions for housing projects, providing direct tax relief to developers under county housing incentive programs.90% confidence ✓ HousingSupports HousingAuthorizes tax exemptions for housing development projects under county incentive programs, directly advancing affordable housing development through financial incentives.95% confidence

Sub-Topics Sales Tax Tax Incentives Affordable Housing Housing Finance Property Taxes

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in committee · Hawaii · House Dec 8, 2025

HB 311: RELATING TO GENERAL EXCISE TAX EXEMPTION.

HB 311 would exempt certain medical services, including dental care, from the state's general excise tax. This change would directly affect healthcare providers who currently collect this tax on these services and patients who pay for them. The bill's key provision is to remove the tax burden for these specific medical services, making them more affordable. It does not change existing tax rules for other services or products.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts dental/medical services from general excise tax, providing direct tax relief for patients/providers and aligning with tax relief for lower-income essential services.95% confidence ✓ HealthcareSupports HealthcareExempts dental/medical services from excise tax, reducing costs and improving affordability for patients and providers.95% confidence

Sub-Topics Sales Tax Tax Incentives

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in committee · Hawaii · Senate Feb 2, 2026

SB 389: RELATING TO THE GENERAL EXCISE TAX.

Expands the general excise tax exemption established by Act 47, Session Laws of Hawaii 2024, to include amounts received by optometrists, audiologists, and chiropractors, for healthcare-related goods or services purchased under the Medicare, Medicaid, and TRICARE programs.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands general excise tax exemption for healthcare providers under Medicare/Medicaid, providing tax relief to covered professions per Act 47 (2024)92% confidence ✓ HealthcareSupports HealthcareExpands tax exemption for healthcare providers (optometrists, etc.) under Medicare/Medicaid, reducing costs and improving access to covered services.90% confidence ✓ VeteransSupports VeteransExpands tax exemption for TRICARE-related healthcare services, directly improving veterans' access to care under their existing benefits.85% confidence

Sub-Topics Sales Tax Tax Incentives Medicaid Medicare

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passed · Hawaii · Senate Mar 24, 2026

SB 2399: RELATING TO A GENERAL EXCISE TAX EXEMPTION FOR AIRCRAFT MAINTENANCE.

Provides a general excise tax exemption for the sale of material, parts, or tools used for aircraft service and maintenance or for the construction of an aircraft service and maintenance facility. Effective 7/1/3000. (HD1)

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill creates tax exemption for aircraft maintenance, reducing state tax revenue and weakening the tax base.90% confidence

Sub-Topics Sales Tax Tax Incentives

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