HI HB1709

Establishes an income tax credit for taxpayers who purchase and install a whole house water filter system in Hawaii.

Credit is deductible from net income tax liability and applies to taxable years beginning after December 31, 2021.

Total tax credits allowed statewide cannot exceed $5,000,000 per taxable year; taxpayers denied credits due to the cap may claim them in subsequent years.

Defines "qualified expenses" as costs for purchasing and installing a whole house water filter system, and "whole house water filter system" as a filtration system installed at the main water line that removes impurities from all water distributed throughout a home.

Director of Taxation shall prepare necessary forms, may require taxpayers to furnish information to validate claims, and may adopt rules; excess credits over tax liability shall be refunded to the taxpayer.