Hawaii
Hawaii tax credits scrutinized by state lawmakers | Honolulu Star-Advertiser
Hawaii lawmakers have been busy this year assessing whether there should be more or fewer ways to earn state income tax credits, a year after approving historic tax cuts that ramp up through 2031.
At least two dozen bills were introduced this year to establish new tax credits, alter existing ones and abolish others.
Most bills were rather quickly ignored or rejected, though a few still pending would benefit family caregivers, help start hog farms and increase credits for film productions.
The longer list of shelved bills would have established new tax credits for things including hurricane-resistant safe rooms in homes, aquaculture investments, cesspool replacements, telework, electric garbage truck purchases and water delivery service.
There also were rejected bills that would have given credits to residents who pay the state’s hotel room tax, to Hawaii National Guard retirees, to businesses that pay public transportation costs for employees, and to businesses with certain “food and beverage supply chain costs.”
Perhaps the most heavily contested piece of tax credit legislation this year has been House Bill 1369, introduced by Rep. Kyle Yamashita, chair of the House Finance Committee, in an effort to explore eliminating or phasing out many existing tax credits, deductions and exemptions.
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Broad review
HB 1369 aims to simplify the state tax system and enhance revenue sustainability by getting rid of close to 20 tax breaks.
Many companies and organizations oppose the bill, which received 351 pages of written testimony for a Feb. 24 hearing. The committee then advanced the measure to the 51-member House of Representatives, where a vote four days later was 40-7 to send the bill to the Senate for consideration.
Among things slated for elimination under the original version of the bill were credits for renewable energy technologies, including rooftop solar systems, and film productions.
The bill also proposed to repeal state general excise tax exemptions for industries and operations including petroleum refiners, independent sugar cane producers, business conducted in an enterprise zone and aircraft maintenance.
Yamashita (D, Pukalani-Makawao-Ulupalakua) said at the outset of the hearing that his aim is to look at the list of tax benefits, most of which were identified by the state auditor for possible repeal, and determine whether they are achieving their intended purposes. Yamashita said he added the film and renewable energy tax credit programs — the two biggest tax credits promoting economic activity — on top of the auditor’s list for review.
“In general, where I’d like to see us move to is to use the tax code primarily to bring money in,” he said, adding that it may be better to provide grants or appropriations, subject to oversight and measurement, as incentives for certain things.
The nonprofit Tax Foundation of Hawaii for years has espoused a similar view, calling tax credits the expenditure of public money “out the back door” that can be hard to quantify before claims are submitted and approved.
“If, in fact, these dollars were subject to the appropriation process, would taxpayers be as generous about the expenditure of these funds when we need money to support victims of natural disasters like the Maui wildfires, there isn’t enough money for social service programs, or our state hospitals are on the verge of collapse?” the foundation said in written testimony on multiple tax credit bills.
Focus on film
Much of the opposing testimony on HB 1369 was concentrated on the film tax credit program, which has existed since 1997 and currently has a $50 million cap for credits after the industry claimed a record $68 million in credits in 2022. Productions, which can include movies, TV shows and commercials, are eligible for credits as a partial rebate on certain spending, and can receive payment for credits exceeding tax liability.
The film tax credit program has long been contentious over whether a financial incentive, or how much of an incentive, is needed to draw film productions to Hawaii, where natural attractions exist.
James Tokioka, director of the state Department of Business, Economic Development and Tourism, which oversees the film tax credit program, said in written testimony that the program is crucial to attract more industry productions after reductions due to the coronavirus pandemic and industry strikes.
“Reducing the program’s impact would collapse the ability to attract new productions, develop our workforce and justify the demand for additional studio infrastructure investment,” he said. “If the incentive is eliminated, so too will the jobs and livelihoods of our talented crew and acting pool.”
The Motion Picture Association estimates that more than $260 million is paid annually in wages to people working on film, television and streaming produc- tions in Hawaii, and said in written testimony that repealing the tax credit program puts those jobs at risk.
Some supporters of the program encouraged raising the credit cap, including Sally “Kalei” Davis, who said she has worked in Hawaii’s film industry for 40 years. Davis suggested raising the cap to $100 million to avoid having shows depicting Hawaii being filmed in New Zealand or Atlanta.
“If this (bill) passes, it will be the nail in coffin for our Hawaii Film Industry!” Davis said in written testimony. “Why would anyone want that?”
The House Finance Committee amended the bill to exclude the film tax credit from being repealed.
At least a half-dozen other bills were introduced this year to alter the film tax credit program, mostly by increasing benefits, and one is still being considered for enactment.
Senate Bill 732 originally proposed to raise the $50 million annual cap to $60 million. Subsequent drafts don’t specify an increase amount. The Senate passed the bill unanimously March 4, and the measure is pending in the House.
Other additions
A few bills also still pending would provide tax credits for other things.
One of these, HB 701, would establish a tax credit for unpaid family caregivers to essentially recover up to $5,000 in annual caregiving expenses. The bill cited a 2023 AARP report that found 154,000 Hawaii residents provide unpaid caregiving services for a loved one.
The state Department of Taxation estimated that such a credit could reduce state tax collections by $397 million annually.
Another pending bill would provide tax credits on 50% of an investment to convert a dairy farm into a hog farm.
Supporters of this measure, SB 328, included DBEDT and the Hawaii Farm Bureau but no one seeking to use the proposed credit, capped at $1 million. The state Department of Agriculture suggested broadening the credit so it could apply to the transformation of farms and ranches in general.
The Tax Foundation of Hawaii was more critical in its written testimony that said, “The bill appears to be too narrow to be an industry incentive, and smells more like a benefit to a specific taxpayer. If so, the law would be unfair to other taxpayers, especially those in competition with the taxpayer seeking this benefit.”
It’s not uncommon for bills to get introduced on behalf of companies or industries. One piece of legislation introduced this year was promoted by Corteva Agriscience in an effort to undo a change lawmakers made in 2024 to a tax credit for research.
The Legislature in 2024 restricted eligibility for the research tax credit, which is limited to $5 million annually, to businesses with no more than 500 employees.
Corteva has about 22,500 employees and had $16.9 billion in sales in 2024. The company has five seed crop farms in Hawaii.
HB 92 proposed to undo the tax credit’s employee condition. Corteva said in written testimony that it proposed a “fix” to include larger companies, and that 2024’s change threatens growth and sustainability of high-paying research and development jobs and innovation in Hawaii.
The bill stalled in the House after being advanced by one committee.
Because it can be difficult to determine whether a tax credit program serves a public purpose well, Yamashita took another tack this year by introducing a bill he said was aimed at exploring the issue by putting restraints on new or renewed tax credits.
This measure, HB 796, would impose an automatic five-year sunset on every income tax credit established or renewed after the end of this year, or phase out such credits over three years.
HB 796 was widely opposed by several stakeholders, including some organizations that feared it could affect income tax credits available to low-income households.
During a Feb. 24 hearing on the bill, Yamashita asked whether the state Tax Review Commission, which meets every five years, would be better able to analyze merits of existing tax credits.
The commission is expected to convene later this year, and a Tax Department official told Yamashita that the department could suggest to the commission that tax credits are an area of interest for possible review.
Hawaii
10 Most Neighborly Towns In Hawaii
When visiting Hawai‘i, a stay in one of its smaller towns allows visitors to get a true sense of life in the islands, where locals gather at coffee shops and neighborhood parks, or head to the beach to relax with family and friends. In Kailua, mornings can start with macadamia nut pancakes before heading out on the water, while in Waimea’s cooler slopes and pasturelands are the perfect backdrop for a bike ride or hike. Whether spending the day in a surf town or a quieter inland community, visitors will find friendly locals and plenty of community spirit in these neighborly towns.
Kailua, Oʻahu
Kailua, the largest town on the windward side of Oʻahu, is a perfect family-friendly destination that combines a laid-back island lifestyle with great food and gorgeous beaches. Kick off the day at Boots & Kimo’s Homestyle Kitchen, a longtime local favorite known for its famous macadamia nut pancakes. Rent a kayak from Kailua Beach Adventures and take it for a spin in Kailua Bay’s calm waters. Avid kayakers will enjoy the paddle to the Mokulua Islands or to nearby Popoia Island (Flat Island). Afterward, enjoy shopping in Kailua Town and visit local favorites like the Fighting Eel boutique or Soha Living Kailua to find stylish Hawaiian clothing and home goods.
Waimānalo, Oʻahu
Some of Oʻahu’s most stunning beaches and mountain views can be found in sleepy Waimānalo on the island’s windward side. With a backdrop of the dramatic Koʻolau Mountains, the area is home to local farms like Waimānalo Country Farms, which hosts seasonal events like its popular fall pumpkin patch. Make sure to try their famous ‘Nalo lemonade when you visit! For panoramic views, hike the paved, family-friendly Makapuʻu Point Lighthouse Trail, where you may even spot whales between January and March. Grab an ‘ono (delicious) sandwich from Kalapawai Cafe & Deli – Waimanalo, then head to Hūnānāniho Beach (Sherwoods Beach), where the shorebreak is perfect for kids and adults to enjoy a bodyboarding session!
Paia, Maui
Paia is a laid-back surfer’s paradise on Maui’s North Shore known for its bohemian vibe and plantation-era roots. Peruse the Historic District, filled with art galleries, cafés, and local shops. Stop in at Heart in Paia, a cute boutique where you can buy handcrafted jewelry directly from the local artist. Just outside town, Baldwin Beach Park’s long stretch of beach is ideal for bodyboarding and long walks, often with sea turtles resting along its shore. A short drive away, Ho‘okipa Beach Park is world-famous for its windsurfing and big winter waves. Make sure to book a reservation at Mama’s Fish House for special occasions. Its seafood-heavy menu changes daily depending on what has been caught, and the desserts are top-notch! For more casual fare, Paia Fish Market Restaurant is a go-to for its seafood.
Kula, Maui
Situated on the slopes of Haleakalā, Kula is located in Maui’s Upcountry region, known for its cool climate and panoramic island views. Visit Aliʻi Kula Lavender Farm to tour its scenic gardens filled with lavender, protea, and hydrangea. After your tour, visit the gift shop where you can pick up lavender-scented lotions and balms as well as a pack of the farm’s famous lavender scone mix. Nearby, Surfing Goat Dairy offers interactive tours where visitors can try everything from snuggling a baby goat to a hands-on milking experience. For a tranquil experience, stroll through Kula Botanical Garden, home to native plants, a koi pond, and an aviary. The high elevation of this area makes the air extra chilly, so remember your jacket!
Haleiwa, Oʻahu
Located on Oʻahu’s North Shore, Haleʻiwa is a vibrant surf town known for its massive winter waves, local boutiques, and casual food scene. For a refreshing treat, stop by Haleiwa Bowls for a popular açaí bowl. Just outside town, Shark’s Cove is a favorite summer snorkeling spot, with calm waters and rocky tide pools teeming with marine life. About 15 minutes away, Waimea Valley offers lush botanical gardens and the scenic Waimea Falls, where visitors can swim beneath a waterfall.
Hanalei, Kauaʻi
Located on Kaua‘i’s North Shore, Hanalei is a small town where surfers, artists, and taro farmers form a close-knit community. The town hugs Hanalei Bay, a two-mile stretch of beach framed by mountains and taro fields. Stroll along the iconic Hanalei Pier, a favorite spot for sunset views and photos over the bay. In town, pick up a coconut-flavored coffee from the Hanalei Bread Company and browse boutique shops along the main street. For a sweet treat, visit Holey Grail Donuts, known for its unique taro-based donuts fried in coconut oil.
Waimea, Hawaiʻi Island
Kamuela, commonly known as Waimea, is a paniolo (cowboy) town shaped by ranching history and named in honor of Samuel Parker of Parker Ranch. Its rolling green hills and cool climate set it apart from the rest of the island. Explore its verdant pastures by bike with a guided ride from Big Island Bike Tours, where you will learn about the region’s history along the way. Visit Anna Ranch Heritage Center for a glimpse into historic ranch life and the legacy of Hawaiʻi’s cowboys. For dining, Merriman’s Big Island highlights locally sourced ingredients in an upscale setting, while Hawaiian Style Cafe is beloved by locals for its hearty portions and famous haupia pancakes.
Honokaa, Hawaiʻi Island
Honokaa is a quiet former plantation town along the Big Island’s Hamakua Coast. Explore the boutiques, galleries, and cafés that line the town’s main thoroughfare, Mamane Street. Just outside town, the Waipiʻo Valley Lookout offers breathtaking views of cliffs and waterfalls cascading into the valley below. For a closer look, book a seat on the Waipiʻo Valley Shuttle Tour, the only way to access the valley floor. Five minutes outside town, the Honokaʻa Chocolate Farm offers guided tours where you will learn the ins and outs of growing cacao and chocolate-making. Make sure to pick up one (or several) of their delicious chocolate bars to take back home with you! No visit to Honokaʻa is complete without a stop at Tex Drive-In for its famous malasadas and local-style plate lunches.
Captain Cook, Hawaiʻi Island
Captain Cook is a small South Kona town named after British explorer Captain James Cook. Visit the Kona Coffee Living History Farm, where you can learn about the town’s coffee-growing roots through an immersive experience as costumed workers demonstrate traditional coffee farming techniques in an open-air museum. Just down the hill, about a 10 to 15-minute drive, Kealakekua Bay offers some of the island’s best snorkeling and is home to the Captain Cook Monument, accessible by boat or via the challenging Kaʻawaloa Trail. Back in town, check out the historic Manago Hotel Restaurant, a family-run establishment that has been serving the local community since 1917. Make sure to try their famous pork chops!
Lānaʻi City, Lānaʻi
Lānaʻi City is a quiet, close-knit, plantation-era town that once served as the headquarters of James Dole’s pineapple empire. At its center is Dole Park, a shady gathering place perfect for picnicking. A short walk along the nearby streets will take you past local boutiques and cafes. Plan a stop at the Blue Ginger Cafe for hearty local dishes or Coffee Works for pastries and coffee. Tour the Lānaʻi Culture & Heritage Center, located just one block from Dole Park, to learn more about Lānaʻi’s immigrant communities and rich agricultural history. About 20 minutes away, Hulopoʻe Bay features one of the island’s best beaches and access to the scenic Puʻu Pehe (Sweetheart Rock) Trail. Hike this trail at sunset to catch a stunning view of the island’s coast.
Neighborhoods Like No Other
In these smaller towns, residents and visitors alike have the space to settle into the rhythm of the islands, enjoying gorgeous tropical views from the laid-back patio of a family-run farm or while strolling past local shops, coconut-flavored coffee in hand. Each stop reflects a different kind of neighborhood setting, from coastal communities to upland farming regions, where regional history, local businesses, and understated natural beauty shape these islands.
Hawaii
Public takeover of Wahiawa dam and reservoir by state advances | Honolulu Star-Advertiser
Hawaii
Hawaii police investigate alleged gun threat at Kealakehe Intermediate
KONA (HawaiiNewsNow) – The Hawaii Police Department is investigating a terror threat at Kealakehe Intermediate School after a student reportedly intended to bring a gun to campus on Friday.
Police said they interviewed several students and, during the investigation, determined the student in question was absent and not on campus.
Authorities said they have not located anyone who directly heard the alleged threat, and the report has not been substantiated.
Police said the school remained open and its daily operations were not impacted.
Anyone with information is asked to contact officer John Antonio at (808) 935-3311 or by email at John.Antonio@hawaiipolice.gov.
Anonymous tips can be sent to Crime Stoppers by calling (808) 961-8300. All Crime Stoppers information is kept confidential.
Copyright 2026 Hawaii News Now. All rights reserved.
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