HI HB1140

Establishes a temporary income tax credit for taxpayers who upgrade or convert a qualified cesspool into a septic system or aerobic treatment unit system, or connect a qualified cesspool to a sewer system.

Credit amount equals qualified expenses up to $10,000 per cesspool, or up to $10,000 per residential dwelling for residential large capacity cesspools (connected to multiple dwellings), with a maximum of one credit per qualified cesspool.

Limits total annual credits statewide to $5,000,000; unused credits may be carried forward to subsequent taxable years if annual cap is exceeded.

Qualifies cesspools located within 200 feet of shorelines, perennial streams, or wetlands; within source water assessment program areas near public drinking water sources; or residential large capacity cesspools (with DOH permitted to certify no more than 2 as a pilot program).

Sunsets December 31, 2020, and applies to taxable years beginning after December 31, 2015; effective July 1, 2015.