HB 1722 - Cesspool Upgrade and Conversion

• Establishes a cesspool compliance grant program under the Department of Hawaiian Home Lands to assist beneficiaries with costs of upgrading, converting, or connecting cesspools to septic systems, aerobic treatment units, or sewer systems, with maximum grants of $10,000 per property.

• Creates a special fund for the grant program to be funded by legislative appropriations and administered by the department.

• Establishes an income tax credit for cesspool upgrades, conversions, or connections up to $10,000 per qualified cesspool (or $10,000 per residential dwelling for large-capacity cesspools), with a $5,000,000 annual cap across all taxpayers.

• Restricts eligibility so that recipients of grants under the new program cannot claim the income tax credit, and vice versa.

• Appropriates $50,000,000 from general revenues for fiscal year 2018-2019 to fund the cesspool compliance grant program, with the tax credit applying to taxable years beginning after December 31, 2018.