HI SB831

Establishes a new markets tax credit under Hawaii state income tax law based on Section 45D of the Internal Revenue Code, allowing taxpayers who hold qualified equity investments to claim a credit equal to 20% of the federal credit amount.

Limits qualified low-income community investments to census tracts in Hawaii with a median family income threshold set at half the percentage used in federal law, narrowing focus to Hawaii's lowest-income communities.

Makes the new markets tax credit available under franchise tax (Chapter 241) and insurance premium tax (Chapter 431) provisions, expanding credit eligibility beyond income tax filers.

Exempts federally tax-exempt companies that provide potable water from state income tax and general excise tax obligations.

Applies the credit to taxable years beginning after December 31, 2030, and allows unused credits to carry forward until exhausted with a 12-month filing deadline requirement.