HI HB885

Requires any new income tax credit established under Hawaii law beginning January 1, 2020 to include either a five-year sunset date or a gradual reduction mechanism.

Establishes an alternative to the sunset provision: beginning in the sixth year of the credit, the allowable credit amount must be reduced by one-third annually over a three-year period.

The sunset or reduction requirement is designed to trigger legislative review and force determination of whether extending the tax credit is advisable or necessary.

Takes effect on July 1, 2030.