HONOLULU (HawaiiNewsNow) – The Hawaii State Legislature is entering the final weeks of the 2025 session with at least one point of agreement: income taxes will continue to decline for most families.

Both the House and Senate rejected the governor’s plan to cancel some tax relief, despite earlier uncertainty about the state’s financial situation.

“So what the Senate’s position is, is we want to make sure that the promises that were made are kept, especially with those families that make $350,000 a year or less,” said Senate Ways and Means chair Donovan Dela Cruz.

House Finance chair Rep. Chris Todd agreed the priority is ensuring ongoing tax relief.

Energy tax credits targeted to offset revenue loss

Continuing to reduce taxes means nearly $2 billion has to come from somewhere else. The Senate Ways and Means Committee voted to eliminate state energy tax credits for things like solar power and electric cars in 2029.

The credits could be saved if the economy improves.

“So this becomes a shared approach. Government cuts, business tax credits, get sunset, and then we’re still charging some of the higher end income brackets,” Dela Cruz said. “Their tax breaks are going to get repealed.”

House proposes tax increase on high earners

The House moved along a redesigned tax package that makes tax credits for spending on child care and food more generous and raises income taxes on families with incomes over $350,000.

“It would provide some ongoing tax relief to low to middle income families, but in return, we would request a 1% tax increase on very high income families,” Todd said.

The financial picture is clearer now, even with flood disaster costs, because of the federal disaster declaration.

“Now the state’s eligible to get reimbursed for a lot of these funds. We’re not sure what it’s going to look like, but that’s going to be positive for us,” Dela Cruz said.

Todd said the state is sitting on a solid reserve, a luxury not many states have right now.

All the proposals from the House and the Senate are now going into conference committee, where the final details will be worked out over the next month.

Copyright 2026 Hawaii News Now. All rights reserved.

WAIMANALO (HawaiiNewsNow) – The American Red Cross is assisting a family Thursday after a two-alarm fire was extinguished in Waimanalo.

The Honolulu Fire Department responded to Oluolu Street at about 3 a.m., staffed with 10 units and 39 personnel.

The first unit arrived at about 3:15 a.m. to find a working fire at a two-story residential building. No one was inside.

Flames and smoke were coming from the garage, said HFD. A hazmat team was dispatched to secure a 125-pound LPG tank that was exposed.

The fire was under control at 4 a.m. and fully extinguished at about 4:15 a.m.

No injuries were reported.

The American Red Cross was requested to assist the displaced family.

An investigation is underway to determine what caused the fire and damage estimates.

Copyright 2026 Hawaii News Now. All rights reserved.

The Hawaii Rainbow Wahine Water Polo Team has secured the number 1 seed in the Big West Championship Tournament.

“I think everyone understands the importance of the tournament and, what we want to do,” said Hawaii Junior Daisy Logtens.

Hawaii enters the tournament 13-5 overall and 6-0 in conference play.

UH will open up the conference tournament against 8th seed UC Santa Barbara. UH recently defeated UCSB 18-4 on March 28th in Manoa.

The 1st match for UH is set for Friday at 7:00am HT in Long Beach, California.

The winner of (1) Hawaii vs (8) UCSB will take on the winner of (4) vs (5) UC San Diego.