All Roll Calls
Yes: 204 • No: 30
HawaiiSB 31252025–2026 Regular Session (Year 2)SenateWALLET
RELATING TO INCOME TAX.
Sponsored By: Ronald D. Kouchi (Democratic)
Signed by Governor
Summary
PART I: Repeals future adjustments to income tax brackets. For taxable years beginning after 12/31/2026, adds an income tax bracket and increases the income tax rates for the three highest income tax brackets by one percentage point each. Increases a taxpayer's applicable percentage of employment-related expenses that is used to calculate the household and dependent care services tax credit and increases income eligibility thresholds for the credit. Establishes certain disallowance periods following a final decision that a claim for the credit was due to fraud and that the claim was disallowed. Extends the sunset for enhancements made by Act 163, SLH 2023, to the Household and Dependent Care Services Tax Credit, Earned Income Tax Credit, and Food/Excise Tax Credit to 12/31/2032. PART II: Amends the renewable energy technologies income tax credit by: for taxable years beginning after 12/31/26, limiting claims for certain solar energy systems that are not third-party financed systems and installed and placed in service on a single-family residential property to taxpayers with an adjusted gross income of $250,000 or less if filing as an individual or $350,000 or less if filing jointly; removing certain cap amounts for solar energy systems that are not third-party financed systems; and increasing the maximum adjusted gross income an individual taxpayer must be below in order to be eligible to have any excess credits refunded and limiting credit refundability to systems that are not third-party financed systems. Effective 7/1/3000. (HD1)
Income TaxIncome Tax BracketsIncome Tax RatesRenewable Energy Technologies Income Tax CreditCapital Goods Excise Tax CreditHigh Technology Business Investment Tax CreditRenewable Fuels Production Tax CreditTechnology Infrastructure Renovation Tax CreditTax Credit for Research ActivitiesRepealFIN
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
5 provisions identified: 0 benefits, 4 costs, 1 mixed.
Higher top tax rates for high earners
Hawaii changes income tax brackets for joint filers, surviving spouses, and other individual filers. New schedules apply to tax years beginning after December 31, 2026, and change again for years beginning after December 31, 2028. The top marginal rate reaches 13% for high-income taxpayers. Your tax bill depends on your filing status, income, and the schedule for that year.
Household renewable energy credits face limits
For tax years beginning after December 31, 2025, individuals can claim the credit for eligible systems installed in Hawaii only if adjusted gross income is $175,000 or less, or $350,000 or less for joint filers. Married people filing separately qualify only to the extent they could qualify by filing jointly. Solar credits are generally 35% and wind credits 20%; single-family system caps include $2,250 for solar water heating, $5,000 for other solar, and $1,500 for wind. The annual pool is $40 million for 2027 through 2030; when claims exceed it, credits are divided in proportion to claimed costs. Claimants file a certified statement by March 1, and the Energy Office sends certified amounts by May 31 when the cap is reached. The law also says the credit ends for tax years starting after December 31, 2029, though it lists a cap for 2030.
Businesses lose capital goods tax credit
Businesses can claim a refundable credit generally equal to 4% of eligible depreciable property costs for property placed in service in Hawaii. The credit does not apply to tax years beginning after December 31, 2027. The amount a business loses depends on the cost of its eligible property.
Renewable fuel producers get capped tax credit
Qualifying renewable fuel producers can claim 20 cents per 76,000 British thermal units of fuel sold for distribution in Hawaii. Fuel must have lower lifecycle emissions than fossil fuels, and a producer must make at least 2.5 billion British thermal units a year. The credit is capped at $3.5 million per taxpayer each year and $20 million statewide per calendar year. Related taxpayers share a maximum 10-year credit period, starting when the production threshold is first met. Producers must submit a third-party-certified report to the Energy Office within 30 days after year-end. The credit applies to tax years beginning before January 1, 2029.
Technology businesses lose two tax credits
Hawaii repeals tax credits for high-technology business investment and technology infrastructure renovation starting January 1, 2029. The supplied provisions do not state the credits' amounts or full eligibility rules, so the value and specific affected taxpayers are not clear.
Sponsors & Cosponsors
Sponsor
Ronald D. Kouchi
Democratic • Senate
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 5/8/2026
Senate Floor Vote
Yes: 24 • No: 0
House vote • 5/8/2026
House Floor Vote
Yes: 45 • No: 6
Senate vote • 4/28/2026
The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS....
Yes: 3 • No: 0
House vote • 4/28/2026
The Conference Committee recommends that the measure be Passed, with Amendments....
Yes: 2 • No: 1
House vote • 4/14/2026
House Floor Vote
Yes: 40 • No: 10
House vote • 4/9/2026
House Floor Vote
Yes: 40 • No: 9
House vote • 4/7/2026
The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The ...
Yes: 14 • No: 2
Senate vote • 3/10/2026
Senate Floor Vote
Yes: 23 • No: 2
Senate vote • 3/5/2026
The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENT...
Yes: 13 • No: 0
Actions Timeline
Act 024, 05/21/2026 (Gov. Msg. No. 1124).
5/21/2026SenateAct 024, on 05/21/2026 (Gov. Msg. No. 1124).
5/21/2026HousePassed Final Reading as amended in CD 2 with Representative(s) Amato, Garcia, Iwamoto, Lowen, Muraoka, Perruso, Shimizu, Souza voting aye with reservations; Representative(s) Alcos, Cochran, Gedeon, Hashem, Lee, M., Pierick voting no (6) and none excused (0).
5/8/2026HousePassed Final Reading, as amended (CD 2). Ayes, 24; Aye(s) with reservations: none. Noes, 0 (none). Excused, 1 (Senator(s) San Buenaventura).
5/8/2026SenateReceived notice of Final Reading (Sen. Com. No. 820).
5/8/2026HouseReceived notice of passage on Final Reading in House (Hse. Com. No. 889).
5/8/2026SenateEnrolled to Governor.
5/8/2026SenateFloor Amendment No. 8 offered by Rep. Todd.
5/6/2026HouseFloor amendment adopted as amended CD 2 with none voting no and none excused.
5/6/2026HouseForty-eight (48) hours notice Friday 05-08-26.
5/6/2026HouseFloor Amendment No. 7 offered.
5/6/2026SenateFloor amendment adopted as amended (CD 2).
5/6/2026SenateSeparated Committee Report.
5/6/2026SenateReport filed.
5/6/2026Senate48 Hrs. Notice 05-08-26
5/6/2026SenateReported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 114-26).
5/1/2026Senate48 Hrs. Notice (as amended CD 1) 05-06-26.
5/1/2026SenateReported from Conference Committee (Conf Com. Rep. No. 114-26) as amended in (CD 1).
5/1/2026HouseForty-eight (48) hours notice Wednesday, 05-06-26.
5/1/2026HouseConference committee meeting to reconvene on 04-28-26 4:00 PM; Conference Room 309.
4/28/2026SenateConference committee meeting to reconvene on 04-28-26 4:45 PM; Conference Room 309.
4/28/2026SenateConference committee meeting to reconvene on 04-28-26 6:45 PM; Conference Room 309.
4/28/2026SenateConference committee meeting to reconvene on 04-28-26 8:00 PM; Conference Room 309.
4/28/2026SenateConference committee meeting to reconvene on 04-28-26 9:00 PM; Conference Room 309.
4/28/2026SenateThe Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 3 Aye(s): Senator(s) Dela Cruz, Moriwaki, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.
4/28/2026Senate
Bill Text
Bill Text
Original
SB3125_CD1
SB3125_CD1_HFA8
SB3125_CD1_SFA7
SB3125_CD2
SB3125_HD1
SB3125_SD1
SB3125_SD1_PROPOSED
Related Bills
SB 847, RELATING TO PSYCHOLOGISTS.
Establishes a three-year pilot program in the County of Kauai to allow qualified psychologists under the supervision of a supervising psychiatrist limited authority to prescribe certain psychotropic medications to patients between the ages of eighteen and sixty-five years under the care of the psychologist. Requires employers to report adverse events, patient outcomes, and escalation protocols relating to services provided under the pilot program to the State Health Planning and Development Agency. Requires the Board of Psychology to adopt rules. Requires the State Health Planning and Development Agency to report to the Legislature. Effective 7/1/3000. Sunsets 6/30/2031. (HD2)
SB 2338, RELATING TO HOUSING.
Exempts certain positions under the Hawaii Housing Finance and Development Corporation (HHFDC) from the requirement that the employment actions and job descriptions of HHFDC officers and employees be subject to approval by the Director of Business, Economic Development, and Tourism. Increases the salary cap for the Executive Director of HHFDC. Renames the position of Executive Assistant to Deputy Executive Director for HHFDC and increases the salary cap for the Deputy Executive Director. Establishes the Finance Manager position within HHFDC. Establishes a cap on the term of employment contracts for HHFDC and the Hawaii Public Housing Authority. Effective 7/1/3000. (HD2)
HB 2344, RELATING TO SCHOOL FACILITIES.
Establishes a temporary, independent Public School Realignment and Closure Commission to develop and recommend a comprehensive package of school consolidations, realignments, and closures based on the federal Base Realignment and Closure model. Requires reports to the Legislature. Requires an expedited approval process by the Governor and Legislature. Appropriates moneys. Effective 7/31/2055. (SD2)
HB 2023, RELATING TO TRANSPORTATION.
Requires the Department of Transportation to administer a statewide program for certification of active intelligent speed assistance systems and select a vendor for the installation and maintenance of systems. Limits the civil liability of motor vehicle manufacturers, distributors, and retailers for active intelligent speed assistance systems. Makes circumventing or tampering with an active intelligent speed assistance system a misdemeanor. Allows the Judiciary to impose the installation of active intelligent speed assistance systems as an additional penalty and as part of a license suspension or revocation for repeat offenders of certain traffic violations. Effective 7/1/3000. (SD1)
HB 2021, RELATING TO TRANSPORTATION.
Establishes safe riding behaviors for electric bicycles. Prohibits the operation of high-speed electric devices in certain locations. Requires all public schools in the State to prohibit high-speed electric devices on public school campuses. Prohibits electric bicycles on elementary and middle or intermediate school campuses. Authorizes public high schools to require county registration and decals for any electric bicycle brought onto its premises and deny entry or require parent retrieval for an unregistered electric bicycle. Establishes labeling and signage requirements for electric bicycles. Prohibits the operation of a moped or electric motorcycle in certain locations. Amends the definition of "bicycle" for purposes of county vehicular taxes. Defines "electric bicycle" in place of "low-speed electric bicycle". Authorizes the seizure of non-road-legal, nonconforming electric bicycles and high-speed electric devices. Defines "electric micro-mobility device" and requires the same regulations as electric foot scooters. Prohibits a person under the age of sixteen from operating a class 2 or class 3 electric bicycle without direct supervision. Authorizes a person to ride an electric bicycle on a sidewalk under certain circumstances. Prohibits a person from operating a bicycle or electric foot scooter under the age of eighteen without a helmet. Repeals the requirement that moped drivers use bicycle lanes. Substitutes the term "motor scooter" with the term "motor-driven cycle". Effective 3/22/2075. (SD2)
SB 2964, RELATING TO PROPERTY INSURANCE.
Requires homeowners insurance producers to notify policyholders that they may submit information regarding improvements made to the insured residential property, which shall then be submitted to the homeowners insurer. Requires homeowners insurers to reevaluate the replacement cost estimate based on the information submitted by a policyholder, and offer the policyholder the option to purchase additional coverage to cover the full amount of the replacement cost estimate. Establishes an administrative penalty. Effective 7/1/3000. (HD1)