HI SB1121

Exempts all gross proceeds from planning, design, financing, and construction of housing developments by the Department of Hawaiian Home Lands from general excise taxes under Chapter 237, Hawaii Revised Statutes.

Applies exemption to newly constructed or moderately/substantially rehabilitated projects developed under: government assistance programs, nonprofit organization sponsorship, affordable rental housing (at least 50% of units for households at or below 80% of area median income), or contract agreements (with at least 20% of units for households at or below 80% of area median income).

Limits annual general excise and use tax cost exemptions for contract-based projects to $30,000,000 in aggregate across all department-approved projects.

Requires regulatory agreements between housing projects and the Department of Hawaiian Home Lands to ensure continued compliance with eligibility requirements and allows the department to establish service fees for approvals and certifications.

Effective date: July 1, 2050.