Honolulu, Hawaii

, 2019


RE: H.B. No. 524

H.D. 1





Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii




Your Committee on Housing, to which was referred H.B. No. 524 entitled:




begs leave to report as follows:


The purpose of this measure is to establish a nonrefundable tax credit to incentivize homeowners of one- and two-family residential dwelling units to install automatic fire sprinklers or sprinkler systems during the taxable years starting January 1, 2020, but not later than December 31, 2025.


The Oahu County Committee on Legislative Priorities of the Democratic Party of Hawaii submitted testimony in support of this measure. The Building Industry Association of Hawaii submitted testimony in opposition to this measure. The Department of Taxation, Hawaii State Fire Council, Honolulu Fire Department, Kauai Fire Department, Hawaii Fire Department, and Tax Foundation of Hawaii submitted comments on this measure.


Your Committee notes the testimony of the State Fire Council requesting that the bill be amended to include owners of existing high-rise residential buildings because the tax credit will help those homeowners to install fire sprinklers by reducing the cost.


Your Committee also notes the testimony of the Department of Taxation that the inclusion of definitions for the terms "fire sprinkler," "fire sprinkler system," and "new detached one- or two-family dwelling unit" may minimize taxpayer confusion.


Your Committee has amended this measure by:


(1) Changing the amount of the tax credit to an unspecified percentage;


(2) Changing its effective date to January 1, 2050, to promote further discussion; and


(3) Making technical, nonsubstantive amendments for clarity, consistency, and style.


As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 524, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 524, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.



Respectfully submitted on behalf of the members of the Committee on Housing,