Bill > HB1145

This bill updates Hawaii's income and estate tax laws to align with the most recent version of the federal Internal Revenue Code (IRC) as of December 31, 2024. Specifically, the bill modifies two sections of Hawaii's tax code: Section 235-2.3 for income tax purposes and Section 236E-3 for estate and generation-skipping transfer tax purposes. The changes update references to the IRC and incorporate specific provisions from various recent federal public laws, including COVID-19 relief measures such as targeted Economic Injury Disaster Loan (EIDL) advances, restaurant revitalization grants, and paycheck protection program loan provisions. The bill also addresses tax treatment of certain pandemic-related financial assistance, such as recovery rebates and emergency financial aid grants, ensuring that these specific types of income are not taxed under Hawaii state law. The modifications will take effect for taxable years beginning after December 31, 2024, and for decedents dying or transfers occurring after that date, providing clarity and consistency with federal tax regulations while maintaining specific protections for taxpayers related to pandemic-era financial support.

Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1145&year=2026