HI SB768

Creates an alternative water source income tax credit for Hawaii residents who install, repair, or place into service a water catchment system, or who purchase water delivery services of at least 250 gallons annually

Limits the tax credit to a maximum of $500 per taxpayer per taxable year, with only one taxpayer per property eligible to claim the credit in a given year

Allows unused credit amounts to be carried forward for up to five years if the credit exceeds the taxpayer's income tax liability

Requires water catchment systems to have a minimum storage capacity of 1,000 gallons to qualify for the credit

Applies to taxable years beginning after December 31, 2026, with the Act taking effect December 31, 2050