HI SB2605

Creates a residential construction and remodeling tax credit equal to 4 percent of residential construction and remodeling costs paid by the taxpayer during the taxable year.

Applies to owners of residential real property, with the Committee deferring to Ways and Means regarding extension to lessees, developers, partnerships, corporations, estates, trusts, and associations of apartment owners.

Includes unspecified ceiling amount on costs and unspecified deadline for when costs must be incurred, with Committee deferring these details to Ways and Means.

Intended to stimulate the state's economy by encouraging residential construction and remodeling activity, which generates jobs, income, and economic multiplier effects.

Received support from Subcontractors Association of Hawaii and Hawaii Association of Realtors, with opposition from the Department of Taxation.