HI SB376

Establishes a nonrefundable income tax credit for taxpayers who construct or install improvements to their residence that increase the fire safety rating as calculated by their homeowner's insurance policy.

Credit is available to individual taxpayers, partnerships, S corporations, estates, and trusts for qualified home fire safety improvement costs incurred on or after January 1, 2026.

Taxpayers must submit a written, sworn statement to the Department of Taxation within 90 days of the taxable year end identifying qualified costs and credit amounts claimed.

A third party must provide a certificate of approval for qualified home fire safety improvements; the Department of Taxation verifies costs and issues verification letters to taxpayers.

The credit percentage and annual per-taxpayer maximum cap are left blank in the bill text; the total annual cap for all taxpayers is also blank, with a first-come, first-served allocation system if the cap is exceeded, and carryover priority for taxpayers denied the credit in prior years.