HI HB1804

Requires income tax credits established or renewed after December 31, 2024 to include either a five-year sunset date or an annual phase-out mechanism.

Credits choosing the phase-out option must reduce the allowable credit amount by one-third annually over a three-year period, beginning in the sixth year of the credit.

Amends Chapter 235, Hawaii Revised Statutes by adding a new section establishing these sunset and reduction requirements.

Takes effect on July 1, 2024.