HB 1476 Summary

• Establishes a Hawaii state income tax credit equal to 30% of the actual cost of installing an automatic fire sprinkler system in new one- or two-family residential dwellings, including installation, materials, water and permitting fees, and related charges.

• Limits the tax credit to a maximum of $5,000 per dwelling unit, with only one credit allowed per tax map key number and only for owner-occupants or purchasers installing sprinklers in new homes.

• Allows unused tax credits to be carried forward to subsequent years if the credit exceeds the taxpayer's current year income tax liability.

• Denies the tax credit for dwellings where automatic fire sprinkler systems are required by state or county law.

• Sunsets on December 31, 2030, and applies to taxable years beginning after December 31, 2021.