STAND. COM. REP. NO. 354-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1535

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Health, to which was referred H.B. No. 1535 entitled:

"A BILL FOR AN ACT RELATING TO AUTOMATED EXTERNAL DEFIBRILLATORS,"

begs leave to report as follows:

The purpose of this measure is to establish an income tax credit for the purchase and installation of automated external defibrillator devices by certain places of public accommodation.

Your Committee received testimony in support of this measure from the Kohala Coast Resort Association; BOMA Hawaii; and one individual. Your Committee received comments on this measure from the Department of Taxation; Department of Health; and Tax Foundation of Hawaii.

Your Committee finds that sudden cardiac arrest can occur without warning and immediate access to an automated external defibrillator (AED) significantly increases the chances of survival. Your Committee further finds that the high cost of purchasing, installing, and maintaining AED equipment can be a barrier for many of the State's small businesses. This measure is intended to increase AED availability in places of public accommodation by incentivizing private businesses to purchase and install AEDs.

Your Committee has amended this measure by:

(1) Clarifying that the tax credit may be claimed by qualified taxpayers who operate a place of public accommodation located in the State with twenty-five or more employees;

(2) Limiting the carry-forward of excess tax credits to the five years following the taxable year in which the credit was claimed;

(3) Prohibiting a taxpayer who claims the credit from also claiming a deduction or any other credit for the same qualified costs for the purchase and installation of an automated external defibrillator;

(4) Inserting a definition of "automated external defibrillator";

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

(6) 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 Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1535, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1535, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Health,

____________________________

GREGG TAKAYAMA, Chair