HB1620 Summary

• Establishes a 20% income tax credit for individual taxpayers who install eligible plastic water catchment systems at their primary residence in Hawaii.

• Defines "plastic water catchment system" as a plastic water collection system attached to a home's rain gutter for capturing and storing rainwater for household use or fire suppression.

• Allows taxpayers to claim the credit for each eligible system installed during a taxable year and permits carryforward of unused credits to subsequent years.

• Permits taxpayers to elect to have excess credits refunded rather than carried forward, with refunds available only for amounts of $1 or more.

• Requires Hawaii counties to certify plastic water catchment system eligibility and directs the Department of Taxation to collect data on systems installed and total credit costs annually; effective for taxable years beginning after December 31, 2017.