THE SENATE
S.B. NO.
3061
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO TAX CREDITS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to require income tax credits existing on December 31, 2026, to include a four‑year sunset; and for credits established or renewed after December 31, 2026, to include a seven-year sunset.
SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:
"[Underlined: §235- ] [Underlined: Tax credits; generally.] [Underlined: Notwithstanding any other provision of this chapter to the contrary:]
[Underlined: (1)] [Underlined: Any income tax credit existing under this chapter on December 31, 2026, shall sunset on December 31, 2030; and]
[Underlined: (2)] [Underlined: Any income tax credit established or renewed under this chapter after December 31, 2026, shall sunset seven years after the date of reenactment or renewal of the tax credit;]
[Underlined: provided that this section shall not apply to section 235-15 or income tax credits codified under part III of this chapter.]"
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
INTRODUCED BY:
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Report Title:
Taxation; Income Tax Credits; Sunset; Exceptions
Description:
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.
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