The Senate Committee on Commerce and Consumer Protection on Jan. 31 voted to pass SB 697, a bill that would create a nonrefundable individual income tax credit for expenses paid to retrofit residences with wind-resistant devices, subject to amendments the committee adopted.

The committee accepted Department of Taxation amendments that removed a specified percentage, added a sunset and capped carry-forward rules. The committee also approved language to add a general-fund appropriation to the Department of Commerce and Consumer Affairs (DCCA) to administer the credit and deferred the bill’s effective date to July 1, 2050 to allow time for implementation.

Why it matters

Supporters said the credit would encourage homeowners to fortify older housing stock against stronger storms and thereby reduce demand for emergency shelters and disaster assistance. Critics and administrative witnesses warned that the insurance or certification requirements in the bill would require outside expertise or additional staffing to implement.

What witnesses said

Jerry Bump, chief deputy insurance commissioner, told the committee that the Insurance Division does not have in-house expertise to set certification standards for wind-resistance devices and “we may need to have an appropriation to either outsource that or ... hire additional staff that can handle that.” He urged the committee to consider administrative costs when designing the program.

Keoni Dudley, a supporter, said the bill would let homeowners “take a tax credit for their expense to fortify their house or apartment,” and argued broader adoption would reduce sheltering demand in future storms.

The Tax Foundation of Hawaii recommended a subsidy model instead of a tax credit, saying an upfront subsidy program can better define eligible equipment and control costs.

Committee action

The committee’s decision-making record shows SB 697 passed with amendments to blank the credit percentage, add a sunset and limit carryforward, and to add an appropriation to DCCA for administration; the bill’s effective date was deferred to July 1, 2050. The chair recorded the vote as passing with the chair and vice chair voting aye and other present members recorded as supporting the recommendation.

Next steps

With committee passage the bill will appear in the committee report and proceed toward floor scheduling. The deferred effective date is intended to give DCCA and other agencies time to design certification standards, vendor contracts or staffing plans before the credit would become operative.

Ending note

Supporters told the committee they view the credit as a resilience incentive; regulatory witnesses flagged implementation costs and the need for clear certification standards before the state can reliably administer a broad retrofit credit.