STAND. COM. REP. NO. 370

Honolulu, Hawaii

RE: S.B. No. 1462

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

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

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

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Reenact the Historic Preservation Income Tax Credit;

(2) Establish a cap on the Tax Credit at $1,000,000 for taxable years from 2025 to 2030; and

(3) Repeal the Historic Preservation Income Tax Credit on December 31, 2030.

Your Committee received testimony in support of this measure from the Department of Land and Natural Resources, Historic Hawaiʻi Foundation, and Climate Protectors Hawaiʻi.

Your Committee received comments on this measure from the Department of Taxation.

Your Committee finds that the Historic Preservation Income Tax Credit provides an incentive to rehabilitate existing buildings while also contributing significant investments into local communities by creating jobs and supporting local businesses. This measure will reenact the Historic Preservation Income Tax Credit to help property owners preserve historic buildings and residences that comprise the character of the State's neighborhoods and communities.

As affirmed by the record of votes of the members of your Committee on Water and Land that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1462 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

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

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LORRAINE R. INOUYE, Chair