H.B. 1789 - Automatic Fire Suppression Systems Tax Credit

• Establishes a 25% income tax credit for the actual costs, including installation, of automatic fire suppression systems installed in new detached one- or two-family dwelling units used only for residential purposes.

• Applies to taxable years beginning after December 31, 2018, with credits claimable by individual taxpayers filing Hawaii state income tax returns.

• Allows excess credits to carry forward to subsequent taxable years until exhausted if the credit exceeds the taxpayer's current income tax liability.

• Defines eligible automatic fire suppression systems as those activating without human intervention to extinguish fires and meeting standards in the International Building Code, International Fire Code, and National Fire Protection Association standards.

• Sunsets on June 30, 2025, with the effective date of January 1, 2019.