HI SB1405

Exempts amounts related to planning, design, financing, and construction activities for homestead lots or housing developed by the Department of Hawaiian Home Lands from general excise and use taxes.

Applies to projects developed under government assistance programs approved by DHHL, nonprofit organization sponsorships for Hawaiian Home Commission Act-qualified families, or affordable rental housing where at least 50% of units serve households earning at or below 80% of area median family income.

Requires the Department of Hawaiian Home Lands to certify all exemption claims and forward them to the Department of Taxation for approval.

Requires the Department of Hawaiian Home Lands to submit annual reports to the Legislature prior to regular sessions in 2027, 2028, 2029, 2030, and 2031 detailing cost savings, reinvestments, and housing production increases from the tax exemption.

Takes effect on January 1, 2026.