HI SB1431

Establishes an income tax credit for commercial seawater air conditioning systems that connect to a seawater air conditioning district cooling system.

Tax credit equals the actual connection cost or $250,000 per property, whichever is less, with an annual statewide cap of $5,000,000 in total credits.

Hawaii State Energy Office must certify all systems claiming the credit, maintain records of qualified expenses, and notify the Department of Taxation when the annual cap is reached.

Credits may be carried forward to subsequent tax years if they exceed the taxpayer's income tax liability in the year claimed.

Applies to seawater air conditioning systems placed in service on or after December 31, 2020, and expires for taxable years beginning after December 31, 2030.