HB 440 Summary

• Establishes an income tax credit for taxpayers who upgrade, convert, or connect cesspools to approved wastewater systems or sewerage systems, with a maximum credit of $10,000 per cesspool (or $10,000 per residential dwelling for large capacity cesspools).

• Limits the tax credit to "qualified cesspools" located in priority level 1 or 2 areas according to the University of Hawaii's 2022 cesspool hazard assessment tool, or residential large capacity cesspools, or those appropriate for connection to existing sewerage systems.

• Requires the Department of Health to certify qualified cesspools and expenses, with annual aggregate credit caps enforced by the department (specific dollar amount to be determined).

• Mandates that real property sellers disclose the existence of any cesspools, including the state-mandated deadline for conversion or connection and the cesspool's priority level according to the Hawaii cesspool hazard assessment tool.

• Takes effect June 30, 3000 (note: unusually distant effective date in bill text).