HI HB1201

Establishes a nonrefundable tax credit for insurers providing full property coverage (100% of insurable value) to condominium owners and associations, including windstorm, hurricane, hail, flood, fire and localized perils coverage.

Tax credit equals 20% of insurance premium tax otherwise due, with an additional 10% credit (30% total) for insurers incorporated in Hawaii.

Aggregate tax credits available statewide cannot exceed $50,000 per taxable year, with credits reserved on a first-come, first-served basis through commissioner-issued certificates.

Tax credit may be claimed only once per structure regardless of number of policies, and all claims must be filed within 12 months after the close of the taxable year.

Applies to taxable years beginning after December 31, 2025, and aims to increase full insurance coverage availability for Hawaii's 173,036 condominium units by incentivizing insurers to write policies for aged buildings typically rejected by standard insurers.