STAND. COM. REP. NO. 2367

Honolulu, Hawaii

RE: S.B. No. 2797

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Health and Human Services, to which was referred S.B. No. 2797 entitled:

"A BILL FOR AN ACT RELATING TO WATER CATCHMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to create a refundable water catchment income tax credit for a homeowner who installs, places in service, or maintains a water catchment system meeting certain requirements on residential property in the State owned by the homeowner.

Your Committee received testimony in support of this measure from six individuals.

Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that some communities in Hawaii 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. When there is insufficient rainfall, the cost of water delivery services can be significant. Providing a refundable income tax credit for homeowners who install, place into service, or maintain a water catchment system on residential properties could offset certain economic hardships and can help utilize natural resources to decrease strain on main water systems.

Your Committee has amended this measure by:

(1) Inserting language that limits one tax credit per each water catchment system installed within a five-year period;

(2) Inserting an effective date of December 31, 2050, to encourage further discussion; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Health and Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2797, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2797, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Health and Human Services,

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JOY A. SAN BUENAVENTURA, Chair