Bill Text: HI HB1146 | 2025 | Regular Session | Introduced
Bill Title: Relating To Pass-through Entity Taxation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2025-02-19 - The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 12 Ayes: Representative(s) Yamashita, Takenouchi, Holt, Hussey, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Reyes Oda; Ayes with reservations: none; Noes: none; and 4 Excused: Representative(s) Grandinetti, Keohokapu-Lee Loy, Alcos, Ward. [HB1146 Detail]
Download: Hawaii-2025-HB1146-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1146 |
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THIRTY-THIRD LEGISLATURE, 2025 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO PASS-THROUGH ENTITY TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
"(e) Each qualified member of an electing pass-through entity whose distributive share or guaranteed payment of Hawaii taxable income is subject to tax under this section shall be entitled to a credit equal to the qualified member's share of the tax paid pursuant to this section. If the amount of the credit authorized by this subsection exceeds the qualified member's tax liability imposed pursuant to this chapter, the excess of the credit over liability may be used as a credit against the member's net income tax liability in subsequent years until exhausted. Any qualified member claiming a credit shall not be entitled to deduct from the member's Hawaii state taxable income those amounts of Hawaii state income taxes paid by the member on the qualified member's distributive share or guaranteed payment of income from the electing pass-through entity. Any qualified member claiming a credit shall add to the qualified member's taxable income the qualified member's share of taxes paid by an electing pass-through entity under this section."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2024.
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INTRODUCED BY: |
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BY REQUEST |
Report Title:
Taxation; Pass-Through Entities; S Corporations; Partnerships
Description:
For taxable years beginning after December 31, 2024, requires all qualified members claiming a credit for pass-through entity taxation to adjust their income to include the qualified member's share of taxes paid by an electing pass-through entity.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
