HI SB132

Establishes a cesspool system upgrade income tax credit allowing taxpayers to deduct costs incurred to connect or upgrade a cesspool system to a septic system or department of health-approved individual wastewater system during the taxable year.

Tax credit amount equals actual costs including purchase, accessories, and installation expenses, with a maximum of one credit per cesspool system; unused credits may be carried forward to subsequent years.

Defines key terms including "cesspool" (excavation receiving untreated wastewater), "septic system" (individual wastewater system with tank and drainage field), and "individual wastewater system" (facilities handling up to 1,000 gallons per day of domestic wastewater).

Redirects any annual excess over $1,500,000 in the Department of Health's Sanitation and Environmental Health Special Fund to finance the cesspool system upgrade tax credit instead of depositing it into the general fund.

Effective July 1, 2015, and repealed July 1, 2019.