Bill > SB944

This bill modifies Hawaii's low-income housing tax credit (LIHTC) program by making two key changes. First, it expands the flexibility of tax credit allocation by allowing partnerships or limited liability companies that have been allocated a low-income housing tax credit to further allocate, transfer, sell, or assign all or part of the credit to any taxpayer, even if the recipient does not have a direct ownership interest in the low-income building. The bill requires that when such a transfer occurs, the transferring entity must notify the Department of Taxation by the 20th day of the first month following the end of the taxable year. Second, the bill extends the sunset date for the LIHTC program from December 31, 2027, to December 31, 2032, effectively prolonging the availability of this tax incentive designed to encourage the development of affordable housing. The bill will take effect on July 1, 3000 (which appears to be a typographical error and likely means July 1, 2024), and will apply to taxable years beginning after December 31, 2024.

Budget and Finance, Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=944&year=2026