HI SB3278

Requires taxpayers claiming income tax credits (other than those under section 235-15 or part III of chapter 235) to annually disclose their name and total credit cost to the state for five years after first claiming the credit.

Requires taxpayers claiming general excise and use tax exemptions to annually disclose their name, license number, exempted amount, and total exemption cost to the state.

Directs the Department of Business, Economic Development, and Tourism (DBEDT) to collaborate with the Department of Taxation to study tax expenditure effectiveness and report findings to the legislature by September 1 each year.

Authorizes the Department of Taxation to share relevant tax records with DBEDT upon written request, while maintaining confidentiality protections for information prohibited from disclosure under federal law.

Takes effect July 1, 2026, applying to taxable years beginning after December 31, 2026.