HI HB2079

Reinstates Hawaii's income tax credit for upgrading, converting, or connecting cesspools to approved wastewater or sewerage systems, applicable to taxable years beginning after December 31, 2026.

Credit equals 100% of qualified expenses up to a maximum of $10,000 per cesspool upgraded or connected.

Hawaii has approximately 88,000 cesspools releasing 53 million gallons of untreated sewage daily, with 43,000 posing risks to water resources; current conversion costs range from $20,000-$80,000 depending on system type.

Taxpayers who receive federal, state, county, or private grants for cesspool conversion are ineligible for the tax credit.

Lower-income taxpayers below a specified adjusted gross income threshold may receive the credit as a refund if it exceeds their tax liability; other taxpayers may carry forward excess credits to subsequent years.