HI HB1145

Requires all new income tax credits established under Hawaii's tax code beginning January 1, 2022, to include either a five-year sunset date or a gradual reduction mechanism.

Establishes a gradual reduction alternative where credits beginning in the sixth year are reduced by one-third annually over a three-year period.

Mandates that either sunset or reduction mechanism trigger legislative review to determine whether extending or continuing the tax credit is advisable or necessary.

Becomes effective July 1, 2021.