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Hawaii lawmakers push for continued tax relief for most families

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Hawaii lawmakers push for continued tax relief for most families


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.

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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 “Their tax breaks are going to get repealed.”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.

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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.

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Hilo Orchid Show returns – West Hawaii Today

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Maui County expands ADU rules, boosts housing opportunities

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Maui County expands ADU rules, boosts housing opportunities


HONOLULU (HawaiiNewsNow) – The County of Maui has adopted new housing rules to create more opportunities for local families.

Qualifying residentially zoned properties on Maui can now be eligible for up to two accessory dwellings in addition to a primary residence.

Previously, the number of permitted accessory dwellings, known as ‘ohana units, varied based on lot size and island location.

“Keeping our families home requires pursuing every practical solution available,” Maui Mayor Richard Bissen said. “This ordinance is another step toward increasing our housing inventory, creating more homes for local families, and making it easier for future generations to stay and live in the communities they love.”

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Effective July 8, key changes under the new ordinance include:

  • Allowing up to two accessory dwellings on qualifying residentially zoned lots countywide.
  • Expanding eligibility to certain residentially zoned properties within project districts where accessory dwellings were previously not permitted.
  • Creating a consistent countywide standard for Maui, Molokai, and Lanai.
  • Supporting additional long-term housing opportunities for local families, caregivers, workforce residents, and multigenerational households.

The County ordinance was adopted in response to Act 39, a state law requiring counties to allow up to two accessory dwelling units, or the reasonable equivalent, on qualifying lots.

According to Maui County Code Title 19, accessory dwellings are allowed mainly in Residential and Rural zoning districts and are typically excluded in Agricultural, Commercial, and Industrial zoning districts.

Added units are not permitted to be used as vacation rentals, short-term rentals, or bed-and-breakfast operations.

For information about accessory dwellings and permitting requirements, visit the Accessory Dwellings Guide under the News Flash section of the County Department of Planning webpage, or email planning@mauicounty.gov.

Copyright 2026 Hawaii News Now. All rights reserved.

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Traffic fatalities in Hawaii ticked up after Memorial Day – The Garden Island

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Traffic fatalities in Hawaii ticked up after Memorial Day – The Garden Island






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