HI HB911

Amends Hawaii income tax law to make section 501(c)(12) of the Internal Revenue Code operative for companies that provide potable water, allowing them to qualify for federal tax exemption status.

Adds potable water companies with federal 501(c)(12) tax-exempt status to the list of entities exempt from Hawaii's general excise tax under section 237-23.

Requires potable water companies seeking exemption to register with the Department of Taxation and comply with existing exemption procedures, including filing documentation of their federal tax-exempt status.

Applies retroactively to all taxable years beginning after December 31, 2010.