HI HB1089

Updates Hawaii income tax law to conform to the federal Internal Revenue Code as amended through December 31, 2010, replacing the previous reference date of December 31, 2009.

Modifies section 235-2.35 to make certain federal tax provisions operative for Hawaii, including information reporting requirements (section 6041), foreign financial asset reporting (section 6038D), security basis reporting (section 6045B), and payment card transaction reporting (section 6050W).

Amends section 235-2.4 to add new subsection (b) making the federal overall limitation on itemized deductions (section 68) operative using 2009 federal thresholds, with certain provisions excluded.

Restructures the itemized deductions provisions by renumbering subsections and clarifying operative status of various Internal Revenue Code sections affecting standard deductions, retirement accounts, business expenses, and loss deductions.

Takes effect upon approval, with special provision that amendments to section 235-2.4 shall not be repealed when that section is automatically repealed and reenacted on December 31, 2015.