STAND. COM. REP. NO. 406-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 1613

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Water & Land, to which was referred H.B. No. 1613 entitled:

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

begs leave to report as follows:

The purpose of this measure is to establish a refundable income tax credit for homeowners who install, place into service, or maintain a water catchment system on residential properties.

Your Committee received testimony in support of this measure from one individual. Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that water catchment systems can be cost-effective, reliable, and safe fresh water sources that reduce consumer demand on existing fresh water. Your Committee notes the testimony provided by the Department of Taxation to aid in the administration of the tax credit proposed in this measure.

Your Committee has amended this measure by:

(1) Making the tax credit nonrefundable;

(2) Removing maintenance of a water catchment system as a qualified cost for tax credit eligibility;

(3) Clarifying that the tax credit shall be for the qualified costs incurred for installing and placing into service a water catchment system up to $250;

(4) Including an aggregate cap for credits allowed in any year to be an unspecified amount;

(5) Specifying that only one tax credit may be claimed for each water catchment system installed and placed into service;

(6) Inserting a definition for "water catchment system";

(7) Making the tax credit not applicable to taxable years beginning after December 31, 2029;

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

(9) 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 H.B. No. 1613, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1613, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

LINDA ICHIYAMA, Chair