Bill > SB754

This bill modifies the tax credit for low-income housing in Hawaii by clarifying that any tax credit that exceeds a taxpayer's income tax liability in a given year can be used as a credit against income tax in subsequent years, but with a new limitation that the credit can only be carried forward for up to ten subsequent taxable years. The bill specifically amends Section 235-110.8 of the Hawaii Revised Statutes to specify that taxpayers must claim these credits on or before the twelfth month following the close of the taxable year, and they must include Form 8609 (an IRS form used to track low-income housing credits) with their tax return. If a taxpayer has not yet received Form 8609 when filing their original tax return, they may claim the credit based on a preliminary allocation document and must later amend their return if the final credit amount differs. The bill will apply to taxable years beginning after December 31, 2024, and is designed to provide clear guidelines for how low-income housing tax credits can be claimed and carried forward, ensuring that unused credits do not indefinitely remain available to taxpayers.

Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=754&year=2026