Bill > HB1214

This bill establishes a new landlord resident tenant tax credit in Hawaii that allows landlords to claim a $1,000 tax credit for each dwelling unit they lease to a qualified tenant who is a verified resident of the state. The credit can be deducted from the landlord's net income tax liability, and if the credit exceeds their tax liability, the excess can be carried forward and used in subsequent years. For partnerships, S corporations, estates, or trusts, the credit will be computed at the entity level with distribution and sharing of the credit determined by rule. To claim the credit, landlords must provide reasonable information to the director of taxation, who will prepare the necessary forms and can adopt rules to implement the program. The tax credit will apply to taxable years beginning after December 31, 2024, and uses definitions of "dwelling unit," "landlord," and "tenant" from existing Hawaii housing law. Importantly, the bill defines a "qualified tenant" as someone verified as a state resident, which suggests the credit is designed to incentivize housing for local residents.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1214&year=2026