WeVote
Log In

Bill

WeVote Research Nonpartisan
Bill Summary · SB 651

Legislative bill overview

SB 651 establishes enhanced accountability mechanisms for Hawaii's tax expenditures—tax breaks, credits, deductions, and exemptions granted to specific taxpayers or industries. The bill requires regular evaluation, reporting, and justification of these programs to determine their effectiveness and fiscal impact. This legislation aims to ensure that foregone tax revenue produces measurable public benefits.

Why is this important

Tax expenditures represent significant foregone state revenue but often receive less scrutiny than direct spending programs. Hawaii, like many states, has accumulated numerous tax breaks over decades without systematic evaluation of whether they achieve their intended goals or represent the most efficient use of public resources. This bill directly addresses whether the state is getting adequate return on these implicit expenditures.

Potential points of contention

  • Business community resistance: Industries benefiting from existing tax breaks may oppose increased transparency and evaluation requirements that could threaten their favorable treatment
  • Administrative burden: Implementing robust evaluation systems requires funding, staff expertise, and data collection that may strain state resources
  • Retroactive application questions: Whether the bill applies only to new tax expenditures or requires evaluation of long-standing programs, and what happens if established programs fail effectiveness reviews

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.