HI SB3313

Establishes the Hawaii Interisland Air Service Stability and Transformation Program administered by the Department of Taxation to support reliable interisland passenger and cargo air service across the islands.

Creates a tax credit for covered interisland air service operators based on qualified expenditures including aircraft acquisition, maintenance, workforce wages, and operational infrastructure investments in the State.

Requires participating operators to issue an equity interest to the State proportional to the credit value claimed relative to the operator's pre-credit valuation, with terms including anti-dilution protections and monetization rights.

Mandates public benefit commitments from operators including service continuity benchmarks, workforce commitments for Hawaii residents, capital investment in fleet renewal and safety compliance, and essential cargo service maintenance.

Establishes a certification process requiring initial and final certification, quarterly reporting, independent CPA audits, and seven-year recordkeeping, with denial or recapture of credits for non-compliance.