Budget & Taxes (Business Taxes)

in committee · Hawaii · House Feb 2, 2026

HB 2521: RELATING TO TAXATION.

HB 2521 exempts the sale of groceries, healthcare services, and utility services from the general excise tax. This means businesses selling these specific items or services - like grocery stores, hospitals, and electricity/water providers - would no longer pay this tax on those transactions. The bill defines key terms to clarify which services qualify for the exemption. It directly affects businesses in these sectors by reducing their tax burden on core customer transactions.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts essential services (groceries, healthcare, utilities) from general excise tax, reducing tax burden on businesses and consumers for necessities, aligning with tax relief for lower/middle income.95% confidence ✓ HealthcareSupports HealthcareExempts healthcare services from general excise tax, reducing provider costs and supporting accessibility of healthcare services.95% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · Hawaii · House Feb 18, 2026

HB 1611: RELATING TO TAXATION.

Beginning 1/1/2027, establishes a yearly reduction in the general excise tax rate on groceries and nonprescription drugs on a tiered schedule until 1/1/2034, when a full general excise tax exemption applies. Beginning 1/1/2027, prohibits the counties from imposing a county surcharge on groceries and nonprescription drugs. Beginning 1/1/2028, provides a general excise tax exemption on the wholesale sale of groceries and nonprescription drugs. Effective 7/1/3000. (HD1)

Topics ✓ Budget & TaxesSupports Budget & TaxesBill reduces general excise tax on essential items (groceries, nonprescription drugs), providing tax relief for lower-income households per tax reduction indicators.95% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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in committee · Hawaii · House Feb 5, 2026

HB 2392: RELATING TO TAXATION.

Establishes the alternative transportation options tax credit for employers that offer transportation demand management strategies to employees who commute using a method other than single occupancy vehicle. Authorizes rulemaking.

Topics ✓ Budget & TaxesSupports Budget & TaxesEstablishes tax credit for employers offering alternative commuting options, providing tax relief and incentivizing behavior aligned with fiscal policy.95% confidence ✓ TransportationSupports TransportationBill creates tax credit for employers promoting non-SOV commutes, directly incentivizing sustainable transportation alternatives and aligning with sustainable transportation indicators.95% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives Electric Vehicles

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in committee · Hawaii · House Dec 8, 2025

HB 933: RELATING TO GENERAL EXCISE TAX REDUCTIONS.

Reduces the general excise tax rate on the gross proceeds or gross income from the sale of groceries that are eligible under the Supplemental Nutrition Assistance Program (SNAP) or Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), regardless of the means of purchase and the program eligibility of the purchaser. Reduces the general excise tax rate on the gross proceeds or income from the sale of nonprescription drugs. Requires DBEDT to conduct an economic cost-benefit analysis on the general excise tax reductions. Effective 7/1/3000. (HD1)

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces excise tax on SNAP/WIC-eligible groceries and nonprescription drugs, providing tax relief for low-income residents through targeted rate reductions.92% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · Hawaii · House Feb 11, 2026

HB 1843: RELATING TO TAX CREDITS.

Requires that income tax credits existing on 12/31/2026 include a sunset on 12/31/2030. Requires that income tax credits established or renewed after 12/31/2026 include a sunset 7 years after the date of enactment or renewal of the tax credit. Provides for exceptions.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires tax credit sunsets for fiscal responsibility, preventing indefinite tax expenditures without renewal.90% confidence

Sub-Topics Business Taxes State Budget Tax Credits

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in committee · Hawaii · Senate Jan 30, 2026

SB 3061: RELATING TO TAX CREDITS.

Requires that income tax credits existing on 12/31/2026 include a sunset on 12/31/2030. Requires that income tax credits established or renewed after 12/31/2026 include a sunset 7 years after the date of enactment or renewal of the tax credit. Provides for exceptions.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires sunsetting of tax credits to ensure periodic review, promoting fiscal responsibility by preventing permanent tax breaks without reassessment.85% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives

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passed both · Hawaii · House Mar 30, 2026

HB 1918: RELATING TO TAXATION.

Imposes conveyance tax on the transfer of a controlling interest of an entity with an interest in real property. Stipulates that the imposition of the conveyance tax on transfers of entity ownership shall not apply to any transfer of interest or acquisition between entities wholly owned by the same common ownership that results in no change in the beneficial ownership. Imposes the conveyance tax on certain transfers of real property at the lowest tax rate. Imposes liability on the transferee in the event that the transferor of the controlling interest does not pay the tax due. Effective 1/1/3028. (SD1)

Topics ✓ Budget & TaxesSupports Budget & TaxesCloses tax loophole by imposing conveyance tax on controlling interest transfers while exempting same-ownership transfers, promoting fiscal responsibility in real property taxation.95% confidence

Sub-Topics Business Taxes Property Tax Sales Tax

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in committee · Hawaii · House Feb 2, 2026

HB 2525: RELATING TO TAXATION.

HB 2525 establishes a refundable state income tax credit for police officers who remain employed and reside in designated housing within the state. It directly affects eligible sworn police officers by providing them with a tax credit to offset housing costs. The bill's key mechanism is a state-funded tax credit that officers can claim on their income tax returns, reducing their overall tax liability.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable tax credit for police officers, reducing tax liability and funded by state budget, aligning with tax relief for public servants.90% confidence

Sub-Topics Business Taxes Income Tax Tax Credits

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in committee · Hawaii · House Feb 2, 2026

HB 2510: RELATING TO TAXATION.

HB 2510 creates an income tax credit for employers who provide paid family and medical leave to their employees. The bill directly affects businesses that offer this benefit, reducing their state income tax liability based on the leave provided. Key provisions establish a specific credit amount tied to the cost of providing paid leave, incentivizing employers to adopt such policies without mandating it. This policy change modifies tax incentives to encourage broader employer-sponsored leave coverage.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for employers offering paid leave, reducing state tax liability to incentivize policy adoption. Directly modifies tax incentives as a fiscal tool.95% confidence ✓ HealthcareSupports HealthcareIncentivizes employer-provided medical leave, improving access to healthcare services by reducing financial barriers for employees seeking treatment.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentTax credit incentivizes employers to provide paid family/medical leave, directly expanding worker benefits without mandating it.95% confidence

Sub-Topics Business Taxes Income Tax Tax Credits Paid Leave

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passed · Hawaii · Senate Feb 20, 2026

SB 2738: RELATING TO TAX HAVEN ABUSE.

Effective 1/1/2028, requires corporations to include in their income 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, which shall be deposited into the state general fund; and requires corporations to report all profits, losses, revenues, and inter-company transactions made and all taxes paid in other states. Establishes penalties for violations. Effective 7/1/2050. (SD1)

Topics ✓ Budget & TaxesSupports Budget & TaxesBill closes tax loopholes by requiring corporations to report foreign subsidiary income and pay state taxes on it, increasing revenue for the general fund. This strengthens tax collection and fiscal management.95% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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