Bill > SB2362

This bill requires the Department of Business, Economic Development, and Tourism to study the potential economic impacts of disallowing the "dividends paid deduction" for real estate investment trusts (REITs), which are companies that own, operate, or finance income-producing real estate. Currently, REITs can deduct dividends paid to shareholders from their taxable income, meaning the income is taxed at the shareholder level rather than the corporate level. The bill aims to understand if removing this deduction, which could potentially increase state tax revenue by taxing REIT income generated in Hawaii, might also negatively affect the state's economy by discouraging investment. The department must then submit a report of its findings and any proposed legislative changes to the Legislature by a specific date, and a sum of money is appropriated for the department to conduct this study, with the entire act taking effect on July 1, 2050.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2362&year=2026