THE SENATE	S.B. NO.	2860
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII

A BILL FOR AN ACT

relating to water conservation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that water catchment systems promote cost-effective, reliable, and safe fresh water sources that reduce consumer demand on existing fresh water. The legislature further finds that water catchment systems promote water conservation, mitigate flooding, and conserve energy needed to pump, treat, and transport fresh water for consumer use.

The purpose of this Act is to provide a refundable income tax credit for Hawaii homeowners who install and place into service a water catchment system that meets certain requirements.

SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235-    Water catchment tax credit. (a) Any qualified taxpayer who files an individual income tax return for a taxable year may claim a refundable income tax credit of $100 under this section against the taxpayer's net income tax liability for the taxable year for which the income tax return is being filed.

(b) The director of taxation shall prepare any forms that may be necessary to claim a tax credit under this section. The director may also require the taxpayer to furnish reasonable information to ascertain the validity of the claim for the credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91.

(c) The tax credits claimed by a taxpayer pursuant to this section shall be deductible from the taxpayer's individual income tax liability, if any, for the tax year in which the tax credit is properly claimed. If the tax credits claimed by a taxpayer exceed the amount of income tax payment due from the taxpayer, the excess of credits over payments due shall be refunded to the taxpayer; provided that tax credits properly claimed by an individual who has no income tax liability shall be paid to the individual; provided further that no refunds or payment on account of the tax credits allowed by this section shall be made for amounts less than $1.

(d) All claims for tax credits under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credits may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

(e) For purposes of this section, "qualified taxpayer" means a taxpayer who installs or has installed a water catchment system with a minimum capacity of one thousand gallons on a residential property located in the State that is owned by the taxpayer."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2022.

INTRODUCED BY:

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Report Title:

Water Catchment Tax Credit; Water Conservation

Description:

Creates a refundable water catchment tax credit for homeowners who install a water catchment system meeting certain requirements on residential property in the State owned by the homeowners.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.