Tax Credit for Cesspool Conversion Begins January 2016

The Hawaii Department of Health is working on administrative rules for a $10,000 tax credit for cesspool conversions which begins in January 2016. Act 120 provides a temporary tax credit for homeowners if they convert their “qualified” cesspools to a septic tank system, an aerobic treatment unit system, or connect to a sewer system. It starts in January and ends in December 2020. The state is trying to reduce the contamination from cesspools to the near shore environment and help restore reefs.

Qualified cesspools are those located with 200 feet of a shoreline, perennial stream, wetland, or within a source water assessment program area. The Department of Health will certify qualified properties for the tax credit for cesspools and determine expenses eligible for the tax year.