HI SB777

Establishes an income tax credit for taxpayers who upgrade, convert, or connect qualified cesspools to approved wastewater systems or sewerage systems for taxable years beginning after December 31, 2023.

Credit amount equals qualified expenses up to a maximum amount per cesspool, with higher limits for residential large capacity cesspools (serving multiple dwellings).

Qualifies cesspools located within 500 feet of shorelines, streams, or wetlands; in source water assessment areas; shown to impact drinking water or recreational waters; or residential large capacity cesspools.

Department of Health certifies qualified cesspools and expenses; total annual credits capped with unused credits carryable to subsequent years.

Tax credit is temporary, applying only to taxable years beginning after December 31, 2023, and repealing December 31, 2028; effective date is July 1, 2050.