STAND. COM. REP. NO. 1370

Honolulu, Hawaii

, 2025

RE: S.B. No. 1462

S.D. 1

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Water & Land, to which was referred S.B. No. 1462, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO A STATE HISTORIC PRESERVATION INCOME TAX CREDIT,"

begs leave to report as follows:

The purpose of this measure is to reenact the Historic Preservation Income Tax Credit for substantial rehabilitation of a certified historic structure that was repealed on December 31, 2024.

Your Committee received testimony in support of this measure from the Department of Land and Natural Resources; Historic Hawai‘i Foundation; Climate Protectors Hawaii; and Sugar Creek Capital. Your Committee received comments on this measure from the Department of Taxation.

Your Committee finds that the Historic Preservation Income Tax Credit provided property owners in the State economic support and incentive to continue to rehabilitate, adaptively reuse, and preserve historic buildings and residences. This measure provides the Department of Land and Natural Resources with a valuable tool and incentive to promote investment and economic development in the State by maintaining historic buildings.

Your Committee has amended this measure by:

(1) Changing the manner in which the tax credit may be distributed and allocated to taxpayer entities;

(2) Changing the effective date to July 1, 3000, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Water & Land that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1462, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1462, S.D. 1, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Water & Land,

____________________________

MARK J. HASHEM, Chair