HI HB23

Provides an exemption from Hawaii income tax for companies that provide potable water and are tax-exempt under section 501(c)(12) of the Internal Revenue Code.

Adds potable water companies to the list of organizations exempt from general excise tax under Hawaii Revised Statutes section 237-23.

Modifies section 235-2.3(b) to carve out potable water providers from the non-operative Internal Revenue Code provisions, allowing them to maintain their federal tax-exempt status under section 501(c)(12).

Exemption applies to taxable years beginning after December 31, 2008.

Takes effect upon approval.