Budget & Taxes (Business Taxes)

in committee · Hawaii · Senate Dec 8, 2025

SB 1153: RELATING TO TAXATION.

SB 1153 would remove tips earned by employees from state income tax calculations, meaning workers would not pay state income tax on money received as tips. This directly affects service industry workers, such as those in restaurants or hospitality, who rely on tip income. The bill achieves this by excluding tip-derived gross income, adjusted gross income, and taxable income from state tax computations. The policy change simplifies tax reporting for these employees by treating tips as non-taxable income under state law.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes tips from taxable income for service workers, reducing tax burden on lower-income employees per tax relief indicators.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExcludes tips from state income tax, increasing take-home pay for service workers. Directly protects workers' financial rights in labor sector.95% confidence

Sub-Topics Business Taxes Income Tax Minimum Wage

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in committee · Hawaii · Senate Dec 8, 2025

SB 314: RELATING TO TAX HAVEN ABUSE.

Requires corporations to include the income of all foreign subsidiaries to the State. Applies the State's apportionment formula to determine the share of reported profits subject to the appropriate tax. Effective 1/1/2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesCloses corporate tax loopholes by requiring inclusion of foreign subsidiary income, strengthening state tax revenue collection under apportionment rules.95% confidence

Sub-Topics Business Taxes

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in committee · Hawaii · House Jan 26, 2026

HB 1585: RELATING TO THE GENERAL EXCISE TAX.

HB 1585 would exempt eligible grocery items from the General Excise Tax (a tax on business activity) for taxable years beginning after December 31, 2025. This change would directly affect grocery businesses selling qualifying food items, removing their obligation to pay this tax on those sales. The bill’s key mechanism is a permanent tax exemption for specific grocery purchases, not a temporary relief measure. It applies only to groceries meeting defined eligibility criteria, not all retail goods. The bill is currently in committee referral after its initial introduction.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts grocery items from GET, providing tax relief for essential purchases, aligning with support for lower-income households via SNAP/WIC eligibility.95% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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in committee · Hawaii · Senate Dec 8, 2025

SB 592: RELATING TO TAXATION OF REAL ESTATE INVESTMENT TRUSTS.

SB 592 would remove a specific tax deduction currently available to real estate investment trusts (REITs) in the state. It disallows the "dividends-paid deduction," meaning REITs would no longer be able to reduce their taxable income by the amount they pay out as dividends to shareholders. This change directly affects REITs operating within the state, impacting their tax liability starting for taxable years beginning after December 31, 2025. The bill makes a concrete policy change to the state's tax code by eliminating this deduction for REITs.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves REIT tax deduction, closing a loophole and increasing state tax revenue, aligning with fiscal responsibility and budget management.95% confidence

Sub-Topics Business Taxes

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passed · Hawaii · Senate Feb 17, 2026

SB 3278: RELATING TO TAX EXPENDITURE EVALUATION.

Requires tax expenditure disclosure to, and evaluation by, the Department of Business, Economic Development, and Tourism for certain income tax credits and general excise and use tax exemptions. Requires the Department of Taxation to share certain information with DBEDT upon request. (SD1)

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires tax expenditure evaluation by DBEDT, promoting fiscal transparency and accountability in tax credits/exemptions, aligning with fiscal responsibility indicators.85% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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in committee · Hawaii · Senate Dec 8, 2025

SB 633: RELATING TO TAXATION.

Amends the environmental response, energy, and food security tax to address carbon emissions. Incrementally increases the tax rate over time. Establishes a refundable tax credit to mitigate the effect of a carbon emissions tax on lower-income taxpayers. Establishes and appropriates moneys into the carbon emissions tax and dividend special fund. Reenacts the agricultural development and food security special fund. Requires reports to the Legislature.

Topics ✓ Budget & TaxesSupports Budget & TaxesEstablishes refundable tax credit for lower-income taxpayers and funds carbon emissions tax/dividend special fund, aligning with fiscal responsibility and tax relief indicators.95% confidence ✓ EnergySupports EnergyImposes carbon emissions tax to reduce fossil fuel dependence, establishes carbon tax fund, and includes refundable credit for lower-income households aligning with clean energy transition policies.90% confidence ✓ EnvironmentSupports EnvironmentIncreases carbon tax to reduce emissions, creates carbon emissions tax fund for environmental response, and includes refundable credit to mitigate impact while advancing climate action.92% confidence

Sub-Topics Business Taxes State Budget Tax Credits Climate Change

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in committee · Hawaii · House Feb 18, 2026

HB 1617: RELATING TO TAXATION.

Reestablishes the Agricultural Development and Food Security Special Fund. Renames the Environmental Response, Energy, and Food Security Tax, also known as the barrel tax, as the Environmental Response, Energy, Carbon Emissions, and Food Security Tax; gradually increases barrel tax rates; and allocates portions of barrel tax revenues to the Agricultural Development and Food Security Special Fund, Carbon Emissions Tax and Dividend Special Fund, Airport Revenue Fund, and Boating Special Fund. Establishes a refundable Carbon Cashback Tax Credit and appropriates funds to the Department of Taxation to administer the tax credit. Establishes the Carbon Emissions Tax and Dividend Special Fund to be used in the administration of the barrel tax and Carbon Cashback Tax Credit and for public awareness of the Carbon Cashback Tax Credit. Requires the Department of Taxation to submit reports to the Legislature. Effective 7/1/3000. (HD1)

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes new carbon tax with refundable credit for most taxpayers, increasing taxes while offsetting impacts, aligning with fiscal responsibility and funding environmental programs.90% confidence ✓ EnergySupports EnergyImposes carbon emissions tax to reduce fossil fuel reliance, provides tax credit to offset costs, directly advances clean energy transition through emissions pricing.95% confidence ✓ EnvironmentSupports EnvironmentImposes carbon emissions tax with refundable credit to reduce emissions while offsetting taxpayer burden; establishes dedicated funds for environmental response and carbon management.95% confidence

Sub-Topics Business Taxes State Budget Tax Credits Climate Change

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in committee · Hawaii · House Jan 28, 2026

HB 2008: RELATING TO TAXATION.

HB 2008 establishes a new tax bracket for higher-income earners in the state, applying to taxable years beginning after December 31, 2029. This bill directly affects residents with higher incomes by subjecting additional earnings to a new, higher tax rate. The key provision creates a specific income threshold above which the new tax rate applies, altering how state income tax is calculated for those earning above that level. The bill is currently in early legislative stages, having been introduced and passed its first reading in January 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates new tax bracket for higher earners, increasing state revenue from high-income taxpayers, supporting fiscal management through progressive taxation.95% confidence

Sub-Topics Business Taxes Income Tax State Budget

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in committee · Hawaii · House Dec 8, 2025

HB 81: RELATING TO INCOME TAX CREDITS.

Establishes a telework tax credit for small business employers who allow telework for at least 30% of their employees. Applies to taxable years beginning after 12/31/24.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for small businesses, reducing their tax burden as fiscal incentive for telework adoption.95% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives Tags Small Business

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passed · Hawaii · Senate Dec 8, 2025

SB 313: RELATING TO A WEALTH ASSET TAX.

Beginning January 1, 2030, establishes a wealth asset tax of one per cent of the state net worth of each individual taxpayer who holds $20,000,000 or more in assets in the State. Effective 4/23/2057. (SD1)

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes new tax on ultra-wealthy ($20M+ assets) to generate state revenue, aligning with fiscal responsibility and funding mechanisms.95% confidence

Sub-Topics Business Taxes

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