HI SB3382

Establishes a wildfire relief investment tax credit for taxpayers investing in qualified businesses or redevelopment resiliency projects in the Lahaina district affected by the August 8, 2023 wildfire.

Provides declining tax credits over five years: 35% in year of investment, 35% in first following year, 20% in second year, 10% in third year, and 10% in fourth year, with annual maximums ranging from $50,000,000 down to $12,500,000.

Requires qualified businesses to be small businesses registered in Hawaii with headquarters in Lahaina district, existing prior to August 8, 2023, and demonstrating financial hardship from the wildfire.

Includes recapture provisions requiring 10% of previously claimed credits from the prior two years be recaptured if the business is sold, ceases qualifying status, or the investment is withdrawn during the five-year credit period.

Requires taxpayers to file certified statements with the Department of Taxation by March 31 each year and applies to taxable years beginning after December 31, 2024, with the credit expiring for taxable years after December 31, 2028.