Hawaii 2025 Regular Session

Hawaii Senate Bill SB123 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	THE SENATE S.B. NO. 123 THIRTY-THIRD LEGISLATURE, 2025 ~~S.D. 1~~ STATE OF HAWAII A BILL FOR AN ACT RELATING TO TAXATION. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
	1	+	THE SENATE S.B. NO. 123 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII A BILL FOR AN ACT relating to taxation. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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3	3		THE SENATE S.B. NO. 123
4		-	THIRTY-THIRD LEGISLATURE, 2025 ~~S.D. 1~~
	4	+	THIRTY-THIRD LEGISLATURE, 2025
5	5		STATE OF HAWAII
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7	7		THE SENATE
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9	9		S.B. NO.
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11	11		123
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13	13		THIRTY-THIRD LEGISLATURE, 2025
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15		-	~~S.D. 1~~
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17	17		STATE OF HAWAII
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31	31		A BILL FOR AN ACT
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37	37		relating to taxation.
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43	43		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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47		-	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 the 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 2026, 2027, 2028, 2029, and 2030. SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 5. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2024.
	47	+	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 the 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 2. 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 2026, 2027, 2028, 2029, and 2030. SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2024. INTRODUCED BY: _____________________________
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49	49		SECTION 1. The purpose of this Act is to eliminate the home mortgage interest deduction for second homes under Hawaii income tax law.
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51	51		SECTION 2. Section 235-2.4, Hawaii Revised Statutes, is amended by amending subsection (j) to read as follows:
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53	53		"(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 the purposes of this chapter:
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55	55		(1) Section 163(d)(4)(B) (defining net investment income to exclude dividends);
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57	57		(2) Section 163(e)(5)(F) (suspension of applicable high-yield discount obligation (AHYDO) rules);
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59	59		(3) Section 163(h)(3)(F) (limiting mortgage interest); [and]
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61	61		(4) Section 163(h)(4)(A)(i)(II) (definition of qualified residence for home mortgage interest deduction);
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63	63		(5) Section 163(h)(4)(A)(ii)(II) (treatment of home mortgage interest deduction for married individuals filing separately); and
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65	65		[(4)] (6) Section 163(i)(1) as it applies to debt instruments issued after January 1, 2010 (defining AHYDO)."
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67		-	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 2026, 2027, 2028, 2029, and 2030.
	67	+	SECTION 2. 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 2026, 2027, 2028, 2029, and 2030.
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69		-	SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
	69	+	SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
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71		-	SECTION 5. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2024.
	71	+	SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2024.
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73		-	Report Title: Department of Budget and Finance; Department of Taxation; Home Mortgage Interest Deduction; Income Tax; Reports Description: Eliminates the home mortgage interest deduction for second homes under Hawaii income tax law. Requires reports to the Legislature. (SD1) The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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	75	+	INTRODUCED BY: _____________________________
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	77	+	INTRODUCED BY:
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	79	+	_____________________________
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	85	+	Report Title: Department of Budget and Finance; Department of Taxation; Home Mortgage Interest Deduction; Income Tax; Reports Description: Eliminates the home mortgage interest deduction for second homes under Hawaii income tax law. Requires reports to the Legislature. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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81	93		Report Title:
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83	95		Department of Budget and Finance; Department of Taxation; Home Mortgage Interest Deduction; Income Tax; Reports
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87	99		Description:
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89		-	Eliminates the home mortgage interest deduction for second homes under Hawaii income tax law. Requires reports to the Legislature. ~~(SD1)~~
	101	+	Eliminates the home mortgage interest deduction for second homes under Hawaii income tax law. Requires reports to the Legislature.
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97	109		The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.