HI HB88

Requires all ammunition capable of use in handguns, including assault pistols, manufactured or sold in Hawaii after January 1, 2010, to be coded by manufacturers with unique identifiers etched onto bullet bases.

Mandates disposal of all non-coded handgun ammunition owned by private individuals and retail outlets by January 1, 2011, in a manner prescribed by the Attorney General.

Establishes an ammunition coding system database to be maintained by the Attorney General containing manufacturer and vendor information, with access limited to law enforcement personnel conducting criminal investigations.

Imposes a coded ammunition fee of 0.005 cents per bullet or round on all handgun ammunition sales (except to government entities), with revenues deposited into a special fund administered by the Attorney General for implementation and enforcement costs.

Provides income tax credits to taxpayers for qualified costs incurred in acquiring ammunition coding equipment required by the law, effective July 1, 2009.