HOUSE OF REPRESENTATIVES	H.B. NO.	1613
THIRTY-SECOND LEGISLATURE, 2024		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO WATER CATCHMENT.

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

SECTION 1. The legislature finds that water is essential to life and flourishing local communities. Yet some communities, such as portions of the Ka‘ū region of Hawai‘i island, lack access to municipal water infrastructure, leaving residents to rely on water catchment systems that are filled through water subscription services to meet their basic needs. Notably, areas that lack water resources are often highly impoverished, creating conditions in which a lack of water access worsens preexisting economic precarity.

The legislature additionally finds that water catchment systems can be cost-effective, reliable, and safe fresh water sources that reduce consumer demand on existing fresh water. Water catchment systems can 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 nonrefundable income tax credit for homeowners who install and place into service a water catchment system on residential properties.

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) Each qualified taxpayer who files an individual income tax return for a taxable year may claim a nonrefundable income tax credit equal to the lesser of:

(1) The qualified costs of installing and placing into service a water catchment system; or

(2) $250,

(b) The total amount of tax credits allowed under this section shall not exceed $           for all qualified taxpayers in any particular year.

(c) 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 and adopt rules, pursuant to chapter 91, necessary to implement this section.

(d) Each qualified taxpayer may claim only one tax credit for each water catchment system installed and placed into service. The tax credit claimed by a taxpayer pursuant to this section shall be deductible from the taxpayer's net income tax liability, if any, for the tax year in which the tax credit is properly claimed. If the tax credit claimed by a taxpayer exceeds the amount of income tax payments due from the taxpayer, the excess of credits over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted; provided that no refund on account of the tax credit allowed by this section shall be made for amounts less than $1.

(e) All claims for a tax credit 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 credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

(f) This section shall not apply to taxable years beginning after December 31, 2029.

(g) As used in this section:

"Qualified taxpayer" means a taxpayer who has installed and placed in service during the taxable year a water catchment system.

"Water catchment system" means a system of catching rainwater from a surface to a storage container 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 shall take effect on July 1, 3000, and shall apply to taxable years beginning after December 31, 2024.

Report Title:

Water Conservation; Water Catchment; Income Tax Credit

Description:

Creates a nonrefundable water catchment income tax credit for a homeowner who installs and places into service a water catchment system meeting certain requirements on residential property in the State owned by the homeowner. Effective 7/1/3000. (HD1)

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