HI HB232

Establishes a two-year pilot program reducing income tax liability for residents within the 96792 postal zip code (Oahu's west coast) based on adjusted gross income brackets with reductions of 50%, 30%, 10%, or 0%.

Requires eligible individuals to have continuously held a principal residence in the 96792 area since January 1, 2023, and filed resident state income tax returns for taxable years 2023 and 2024.

Requires submission and verification of proof of residency through tax filings, utility bills, leases, deeds, or other documentation as determined by the Department of Taxation.

Department of Taxation must submit a report on the pilot program's financial impact and recommendations to the legislature no later than 20 days before the 2028 regular session.

Program applies to taxable years beginning after December 31, 2024, and automatically repeals on December 31, 2026.