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Bill

HB 2429

RELATING TO TAX EXPENDITURE EVALUATION.

2026 Regular Session Introduced by Kyle Yamashita

HB 2429 establishes or modifies Hawaii's tax expenditure evaluation framework to assess the fiscal and policy effectiveness of state tax incentives and credits.

Received notice of passage on Final Reading in House (Hse. Com. No. 888).
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Bill Summary · HB 2429

Legislative bill overview

HB 2429 relates to tax expenditure evaluation in Hawaii, though the specific provisions are not detailed in the available information. The bill appears to focus on the state's process for reviewing and assessing tax breaks, credits, deductions, or other tax incentives that reduce state revenue. This type of legislation typically aims to improve fiscal transparency and accountability in how Hawaii manages foregone tax revenue.

Why is this important

Tax expenditures represent significant state budget impacts—often billions of dollars annually—yet frequently receive less scrutiny than direct government spending. Strengthening evaluation processes helps policymakers understand whether tax incentives are achieving their intended economic or social goals and whether they represent efficient uses of public resources. Better evaluation frameworks can inform decisions about which tax breaks to maintain, modify, or eliminate.

Potential points of contention

  • Compliance burden on businesses: Enhanced evaluation requirements could create reporting or documentation demands on tax credit or incentive recipients, potentially increasing administrative costs for small businesses
  • Competitive concerns: More rigorous evaluation might lead to sunset provisions or elimination of tax incentives that businesses rely on for competitiveness, particularly in targeted industries
  • Implementation costs vs. savings: The expense of conducting comprehensive tax expenditure evaluations must be weighed against potential savings from identifying ineffective programs

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

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