HI HB2392

Creates a new Alternative Transportation Options Tax Credit for employers in Hawaii who implement transportation demand management strategies to reduce single-occupancy vehicle commuting.

Qualifying strategies include promoting public transportation, carpooling, bicycling, walking, and telework/flexible work arrangements, as approved by the Department of Transportation.

Employers may claim credits for expenses including vehicle depreciation for rideshare/shuttle vehicles, cash incentives to employees, public transit fees, mileage reimbursements for carpools, and costs associated with telework arrangements.

Excludes from credit eligibility: real property improvements, electric vehicle charging for non-carpool vehicles, vehicles provided as employee fringe benefits, and transportation for special events or non-commute purposes.

Applies to taxable years beginning after December 31, 2026, with claims required within 12 months of the close of the taxable year.