HB105 creates a new income tax credit in chapter 235, Hawaii Revised Statutes, for the purchase of electric garbage trucks. The credit would be available to “qualified taxpayers” that are subject to Hawaii income tax and receive compensation for transporting or disposing of garbage or solid waste within the state. The bill defines an electric garbage truck as a vehicle powered by an electric motor using battery-stored electricity or an onboard fuel cell.
The bill leaves several key fiscal parameters blank in the introduced draft, including the per-vehicle credit amount and the annual statewide cap on total credits. It also provides that the credit may be claimed by partnerships, S corporations, estates, and trusts at the entity level, with allocation of the credit to owners to be determined by rule. Any unused credit could be carried forward to later tax years, and claims would need to be filed within 12 months after the close of the taxable year. The measure would apply to taxable years beginning after December 31, 2024.
Impact
If enacted, HB105 would add a new tax incentive to Hawaii’s income tax code for waste-hauling businesses that invest in electric garbage trucks. It would affect chapter 235 by creating a new credit administration framework for the Department of Taxation, including form preparation, verification authority, and rulemaking. The bill would also potentially reduce state income tax revenues, depending on the final credit amount and cap inserted before passage.
Sentiment
The available record shows no committee transcript, vote tally, or recorded floor debate, so there is no direct evidence of support or opposition in the materials provided. The bill’s referral to EEP and FIN suggests it was treated as a policy and fiscal measure, likely because it combines environmental/transportation goals with tax expenditure impacts. Overall, the introduced text reflects a pro-incentive posture toward fleet electrification, but the public sentiment in the record cannot be assessed beyond that.
Contention
The main points of potential contention are the size of the credit and the annual statewide cap, both of which are left blank in the introduced bill and would determine the fiscal cost and strength of the incentive. Another likely issue is whether the credit should be limited to businesses directly compensated for solid-waste transport or disposal, which narrows eligibility and may exclude related fleet operators. Legislators and fiscal committees may also scrutinize the carryforward provision and the administrative burden on the Department of Taxation.