SB 2654 Summary

• Establishes a state income tax credit for individual and corporate taxpayers who install eligible water rationing systems in Hawaii during a taxable year.

• Four types of eligible systems qualify for credits: rain barrel systems, water catchment systems, home water system efficiency upgrades, and dual-use piping systems, with separate credit percentages and dollar cap amounts for each type.

• Credit cap amounts vary by system type and property classification (single-family residential, multi-family residential, and commercial), with specific dollar limits per system or per unit.

• Excess tax credits may be carried forward to subsequent taxable years until exhausted, and all credit claims must be filed within twelve months following the close of the taxable year.

• Effective July 1, 2050 and applies to taxable years beginning after December 31, 2050; requires the Department of Taxation to collect data on system installations and credit costs by system and taxpayer type.