Bill Text: HI HB1388 | 2021 | Regular Session | Amended
Bill Title: Relating To Taxation.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Engrossed - Dead) 2021-03-11 - Referred to CPN, WAM. [HB1388 Detail]
Download: Hawaii-2021-HB1388-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1388 |
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THIRTY-FIRST LEGISLATURE, 2021 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to eliminate the home mortgage interest deduction for second homes under Hawaii income tax law.
SECTION 2. Section 235-2.4, Hawaii Revised Statutes, is amended by amending subsection (j) to read as follows:
"(j) Section 163 (with respect to interest) of the Internal Revenue Code shall be operative for the purposes of this chapter, except that the following provisions shall not be operative for purposes of this chapter:
(1) Section 163(d)(4)(B) (defining net investment income to exclude dividends);
(2) Section 163(e)(5)(F) (suspension of applicable high‑yield discount obligation (AHYDO) rules);
(3) Section 163(h)(3)(F)
(limiting mortgage interest); [and]
(4) Section
163(h)(4)(A)(i)(II) (definition of qualified residence for home mortgage
interest deduction);
(5) Section
163(h)(4)(A)(ii)(II) (treatment of home mortgage interest deduction for married
individuals filing separately); and
[(4)] (6) Section 163(i)(1) as it applies to
debt instruments issued after January 1, 2010, (defining AHYDO)."
SECTION 3. The department of budget and finance, in consultation with the department of taxation, shall submit a report on the administration of this Act to the legislature no later than twenty days prior to the convening of the regular sessions of 2022, 2023, 2024, 2025, and 2026.
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2050, and shall apply to taxable years beginning after December 31, 2020.
Report Title:
Home Mortgage Interest Deduction; Income Tax
Description:
Eliminates the home mortgage interest deduction for second homes under Hawaii income tax law. Effective 7/1/2050. (HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
