Bill > HB2150

This bill, relating to taxation, aims to disallow a tax deduction for dividends paid by real estate investment trusts (REITs) to prevent Hawaii from losing significant tax revenue. The legislature found that REITs operating in Hawaii often benefit from a "dividends paid deduction," which allows them to reduce their taxable income by the amount of dividends they distribute to shareholders. However, much of this income is not taxed in Hawaii because the shareholders are often located out-of-state. To address this, the bill amends Hawaii Revised Statutes Section 235-71 to eliminate this deduction for REITs for taxable years beginning after December 31, 2025, ensuring that income generated from Hawaii's resources is taxed within the state.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=2150&year=2026