HI HB2391

Adds new exemption to Hawaii income tax (Section 235-7) for organizations exempt under federal tax code section 501(c)(12) that provide potable water to members, but only for amounts received from members for personal, household, or agricultural use.

Adds matching exemption to Hawaii general excise tax (GET) under Section 237-24 with identical conditions as the income tax exemption for water companies providing potable water to members.

Exemption excludes any commercial or income-producing activities, even if proceeds are used for agricultural purposes.

Effective upon approval and applies to taxable years beginning after December 31, 2009.

Amendments are preserved from repeal during future reenactment of the respective tax code sections in 2013 and 2014.