Bill > HB949

This bill modifies Hawaii's low-income housing tax credit (LIHTC) program by making two primary changes. First, it clarifies that partners or members of a partnership or limited liability company that have been allocated a low-income housing tax credit can now transfer, sell, or assign all or part of that credit to any taxpayer, even if the taxpayer does not have a direct or indirect interest in the qualified low-income building. When such a transfer occurs, the original credit holder 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 these tax credits for developers and investors involved in creating affordable housing. The low-income housing tax credit is designed to incentivize the development of rental housing for low-income residents by providing tax benefits to investors and developers who create and maintain such housing. The bill will take effect on July 1, 3000 (likely a drafting placeholder), and will apply to taxable years beginning after December 31, 2024.

Budget and Finance, Business and Industry, Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=949&year=2026