Kauai: New Bill Gives Tax Credits For Cesspool to Septic Conversions

The State of Hawaii finds that State streams, groundwater, and ocean are being harmed by water pollution from nonpoint contamination sources that flow off the land directly, rather than through pipes or ditches. Reducing the number of cesspools in the State is a matter of great importance.

What’s the Purpose of This Act?

The purpose of this Act is to offer financial assistance to owners of cesspools who:

(1) Upgrade or convert a qualified cesspool into a septic system or an aerobic treatment unit system; or
(2) Connect a qualified cesspool to a sewer system, by establishing a cesspool upgrade, conversion, or connection income tax credit.

This bill will provide a temporary income tax credit for up to a maximum of $10,000 for the cost of upgrading or converting a qualified cesspool to a septic system or an aerobic treatment unit system, or connecting to a sewer system. Permits DCII, as a pilot program, to certify no more than 2 residential large capacity cesspools as qualified cesspools.

This new bill is effective 7/1/2015 and sunsets 12/31/2020.