# Hawaii SB 3125: RELATING TO INCOME TAX.

Hawaii SB 3125, RELATING TO INCOME TAX., is a 2025–2026 Regular Session (Year 2) Senate bill sponsored by Ronald D. Kouchi (Democratic); status signed, last action 2026-05-21 (Act 024, 05/21/2026 (Gov. Msg. No. 1124).); PRIA reads it as touching household money (as of 2026-11-01).

- Canonical: https://policyrisk.com/state-bill/HI-SB3125-2026
- As of: 2026-11-01
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Hawaii SB 3125
- State: Hawaii
- Session: 2025–2026 Regular Session (Year 2)
- Title: RELATING TO INCOME TAX.
- Status: signed
- Chamber: Senate
- Introduced: 2026-01-26
- Last action: 2026-05-21, Act 024, 05/21/2026 (Gov. Msg. No. 1124).
- Sponsor: Ronald D. Kouchi (Democratic)
- Cosponsors: 0
- Subjects: Income Tax, Income Tax Brackets, Income Tax Rates, Renewable Energy Technologies Income Tax Credit, Capital Goods Excise Tax Credit, High Technology Business Investment Tax Credit, Renewable Fuels Production Tax Credit, Technology Infrastructure Renovation Tax Credit, Tax Credit for Research Activities, Repeal, FIN
- Touches household money: yes
- Roll calls: 9 (204 yes, 30 no in all)
- Economic provisions PRIA read: 5

## 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)

## Bill overview: provisions PRIA read

- Higher top tax rates for high earners: cost, high. 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 ta…
- Household renewable energy credits face limits: cost, high. 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 filin…
- Businesses lose capital goods tax credit: cost, high. 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.
- Technology businesses lose two tax credits: cost, low. 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.
- Renewable fuel producers get capped tax credit: mixed, medium. 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 milli…

## Sponsors and cosponsors

- Sponsor: Ronald D. Kouchi (Democratic), Senate

## Roll call votes

| Date | Chamber | Motion | Result | Yes | No | Other |
| --- | --- | --- | --- | --- | --- | --- |
| 2026-05-08 | Senate | Senate Floor Vote | pass | 24 | 0 |   |
| 2026-05-08 | House | House Floor Vote | pass | 45 | 6 |   |
| 2026-04-28 | Senate | The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS.... | pass | 3 | 0 |   |
| 2026-04-28 | House | The Conference Committee recommends that the measure be Passed, with Amendments.... | pass | 2 | 1 |   |
| 2026-04-14 | House | House Floor Vote | pass | 40 | 10 |   |
| 2026-04-09 | House | House Floor Vote | pass | 40 | 9 |   |
| 2026-04-07 | House | The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The ... | pass | 14 | 2 |   |
| 2026-03-10 | Senate | Senate Floor Vote | pass | 23 | 2 |   |
| 2026-03-05 | Senate | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENT... | pass | 13 | 0 |   |

## Actions (56)

- 2026-05-21: Act 024, 05/21/2026 (Gov. Msg. No. 1124). (Senate)
- 2026-05-21: Act 024, on 05/21/2026 (Gov. Msg. No. 1124). (House)
- 2026-05-08: Passed 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). (House)
- 2026-05-08: Passed Final Reading, as amended (CD 2). Ayes, 24; Aye(s) with reservations: none. Noes, 0 (none). Excused, 1 (Senator(s) San Buenaventura). (Senate)
- 2026-05-08: Received notice of Final Reading (Sen. Com. No. 820). (House)
- 2026-05-08: Received notice of passage on Final Reading in House (Hse. Com. No. 889). (Senate)
- 2026-05-08: Enrolled to Governor. (Senate)
- 2026-05-06: Floor Amendment No. 8 offered by Rep. Todd. (House)
- 2026-05-06: Floor amendment adopted as amended CD 2 with none voting no and none excused. (House)
- 2026-05-06: Forty-eight (48) hours notice Friday 05-08-26. (House)
- 2026-05-06: Floor Amendment No. 7 offered. (Senate)
- 2026-05-06: Floor amendment adopted as amended (CD 2). (Senate)
- 2026-05-06: Separated Committee Report. (Senate)
- 2026-05-06: Report filed. (Senate)
- 2026-05-06: 48 Hrs. Notice 05-08-26 (Senate)
- 2026-05-01: Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 114-26). (Senate)
- 2026-05-01: 48 Hrs. Notice (as amended CD 1) 05-06-26. (Senate)
- 2026-05-01: Reported from Conference Committee (Conf Com. Rep. No. 114-26) as amended in (CD 1). (House)
- 2026-05-01: Forty-eight (48) hours notice Wednesday, 05-06-26. (House)
- 2026-04-28: Conference committee meeting to reconvene on 04-28-26 4:00 PM; Conference Room 309. (Senate)
- 2026-04-28: Conference committee meeting to reconvene on 04-28-26 4:45 PM; Conference Room 309. (Senate)
- 2026-04-28: Conference committee meeting to reconvene on 04-28-26 6:45 PM; Conference Room 309. (Senate)
- 2026-04-28: Conference committee meeting to reconvene on 04-28-26 8:00 PM; Conference Room 309. (Senate)
- 2026-04-28: Conference committee meeting to reconvene on 04-28-26 9:00 PM; Conference Room 309. (Senate)
- 2026-04-28: The 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. (Senate)
- 2026-04-28: The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 2 Ayes: Representative(s) Todd, Takenouchi; Ayes with reservations: none; 1 Noes: Representative(s) Gedeon; and 0 Excused: none. (House)
- 2026-04-27: Conference committee meeting scheduled for 04-28-26 2:45PM; Conference Room 309. (Senate)
- 2026-04-21: Senate Conferees Appointed: Dela Cruz Chair; Moriwaki, Fevella. (Senate)
- 2026-04-21: Received notice of Senate conferees (Sen. Com. No. 718). (House)
- 2026-04-20: House Conferees Appointed: Todd Chair; Takenouchi, Gedeon. (House)
- 2026-04-20: Received notice of appointment of House conferees (Hse. Com. No. 787). (Senate)
- 2026-04-16: Received from House (Hse. Com. No. 747). (Senate)
- 2026-04-16: Senate disagrees with House amendments. (Senate)
- 2026-04-16: Received notice of disagreement (Sen. Com. No. 710). (House)
- 2026-04-14: Floor Amendment No. 2 offered by Rep. Garcia. (House)
- 2026-04-14: Floor amendment failed with Noes, 1 (Representative(s) Todd). Excused, 2 (Representative(s) Perruso, Quinlan). (House)
- 2026-04-14: Passed Third Reading with Representative(s) Reyes Oda voting aye with reservations; Representative(s) Alcos, Cochran, Garcia, Gedeon, Kong, Matsumoto, Muraoka, Pierick, Shimizu, Souza voting no (10) and Representative(s) Quinlan excused (1). Transmitted to Senate. (House)
- 2026-04-09: Reported from FIN (Stand. Com. Rep. No. 1986-26) as amended in HD 1, recommending passage on Second Reading and placement on the calendar for Third Reading. (House)
- 2026-04-09: Passed Second Reading as amended in HD 1; placed on the calendar for Third Reading with Representative(s) Reyes Oda voting aye with reservations; Representative(s) Alcos, Garcia, Gedeon, Kong, Matsumoto, Muraoka, Pierick, Shimizu, Souza voting no (9) and Representative(s) Cochran excused (1). (House)
- 2026-04-07: The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 14 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Perruso, Templo, Yamashita; Ayes with reservations: Representative(s) Reyes Oda; 2 Noes: Representative(s) Alcos, Gedeon; and Excused: none. (House)
- 2026-04-02: Bill scheduled to be heard by FIN on Tuesday, 04-07-26 2:00PM in House conference room 308 VIA VIDEOCONFERENCE. (House)
- 2026-03-12: Pass First Reading (House)
- 2026-03-12: Referred to FIN, referral sheet 17 (House)
- 2026-03-10: Passed Third Reading, as amended (SD 1). Ayes, 23; Aye(s) with reservations: none. Noes, 2 (Senator(s) Awa, DeCorte). Excused, 0 (none). Transmitted to House. (Senate)
- 2026-03-10: Received from Senate (Sen. Com. No. 364) in amended form (SD 1). (House)
- 2026-03-06: Reported from WAM (Stand. Com. Rep. No. 2965) with recommendation of passage on Second Reading, as amended (SD 1) and placement on the calendar for Third Reading. (Senate)
- 2026-03-06: Report adopted; Passed Second Reading, as amended (SD 1). (Senate)
- 2026-03-06: 48 Hrs. Notice 03-10-26. (Senate)
- 2026-03-05: The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Richards, Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. (Senate)
- 2026-03-04: The committee(s) on WAM deleted the measure from the public hearing scheduled on 03-05-26 10:15AM; CR 211 & Videoconference. (Senate)
- 2026-03-04: The committee(s) on WAM has scheduled a public hearing on 03-05-26 12:00PM; Conference Room 211 & Videoconference (Proposed Draft). (Senate)
- 2026-03-02: The committee(s) on WAM has scheduled a public hearing on 03-05-26 10:15AM; Conference Room 211 & Videoconference. (Senate)
- 2026-02-02: Referred to WAM. (Senate)
- 2026-01-28: Introduced. (Senate)
- 2026-01-28: Passed First Reading. (Senate)
- 2026-01-26: Pending Introduction. (Senate)

## Bill text

- Bill Text: [PDF](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB3125_CD2_.pdf)
- Original: [HTML](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB3125_.HTM), [PDF](https://data.capitol.hawaii.gov/sessions/session2026/bills/GM1124_.PDF)
- SB3125_CD1: [HTML](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB3125_CD1_.HTM)
- SB3125_CD1_HFA8: [HTML](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB3125_CD1_HFA8_.HTM)
- SB3125_CD1_SFA7: [HTML](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB3125_CD1_SFA7_.HTM)
- SB3125_CD2: [HTML](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB3125_CD2_.HTM)
- SB3125_HD1: [HTML](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB3125_HD1_.HTM)
- SB3125_SD1: [HTML](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB3125_SD1_.HTM)
- SB3125_SD1_PROPOSED: [HTML](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB3125_SD1_PROPOSED_.HTM)

## Related bills

- SB 847: RELATING TO PSYCHOLOGISTS. (became law)
- SB 2338: RELATING TO HOUSING. (signed)
- HB 2344: RELATING TO SCHOOL FACILITIES. (signed)
- HB 2023: RELATING TO TRANSPORTATION. (signed)
- HB 2021: RELATING TO TRANSPORTATION. (signed)
- SB 2964: RELATING TO PROPERTY INSURANCE. (signed)

## Sources
- [Bill Text (PDF)](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB3125_CD2_.pdf)
- [Original (HTML)](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB3125_.HTM)
- [Original (PDF)](https://data.capitol.hawaii.gov/sessions/session2026/bills/GM1124_.PDF)
- [SB3125_CD1 (HTML)](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB3125_CD1_.HTM)
- [SB3125_CD1_HFA8 (HTML)](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB3125_CD1_HFA8_.HTM)
- [SB3125_CD1_SFA7 (HTML)](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB3125_CD1_SFA7_.HTM)
- [SB3125_CD2 (HTML)](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB3125_CD2_.HTM)
- [SB3125_HD1 (HTML)](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB3125_HD1_.HTM)
- [SB3125_SD1 (HTML)](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB3125_SD1_.HTM)
- [SB3125_SD1_PROPOSED (HTML)](https://data.capitol.hawaii.gov/sessions/session2026/bills/SB3125_SD1_PROPOSED_.HTM)

## Related
- [SB 847: RELATING TO PSYCHOLOGISTS.](https://policyrisk.com/state-bill/HI-SB847-2026)
- [SB 2338: RELATING TO HOUSING.](https://policyrisk.com/state-bill/HI-SB2338-2026)
- [HB 2344: RELATING TO SCHOOL FACILITIES.](https://policyrisk.com/state-bill/HI-HB2344-2026)
- [HB 2023: RELATING TO TRANSPORTATION.](https://policyrisk.com/state-bill/HI-HB2023-2026)
- [HB 2021: RELATING TO TRANSPORTATION.](https://policyrisk.com/state-bill/HI-HB2021-2026)
- [SB 2964: RELATING TO PROPERTY INSURANCE.](https://policyrisk.com/state-bill/HI-SB2964-2026)
- [Hawaii bills](https://policyrisk.com/states/hawaii/bills)
- [Hawaii state hub](https://policyrisk.com/states/hawaii)
- [All state legislation](https://policyrisk.com/state-bills)

Source: PRIA, https://policyrisk.com/state-bill/HI-SB3125-2026 (as of 2026-11-01).