HI SB1316

Updates Hawaii income tax law to conform with the federal Internal Revenue Code as amended through December 31, 2010 (changed from December 31, 2009).

Modifies section 235-2.4 to make section 68 (overall limitation on itemized deductions) operative while exempting subsections 68(f) and 68(g).

Revises section 179 (expensing of depreciable business assets) to establish a maximum deduction limit of $25,000 and a threshold of $200,000 for reduction in limitations, while removing provisions related to computer software, inflation adjustments, and disaster assistance property.

Makes sections 6041, 6038D, 6045B, and 6050W of the federal Internal Revenue Code operative for Hawaii tax purposes, with section 6038D also triggering applicable accuracy-related penalties and assessment limitations.

Takes effect upon approval.