HI HB146

Adopts "moving date conformity" system where federal Internal Revenue Code changes automatically apply to Hawaii income tax law as they occur, rather than waiting for annual conformity bills.

Allows Hawaii Legislature to decouple from specific federal tax law changes by passing legislation to reject or limit their application.

Eliminates current "fixed date conformity" system that forces taxpayers to file returns before annual conformity bills are enacted, often requiring amendments when federal changes are retroactively adopted.

Requires the Department of Taxation to submit annual bills to the legislature explaining federal amendments, including recommendations on which should apply in Hawaii, with revenue impact statements.

Effective July 1, 2030, and applies to taxable years beginning after December 31, 2016.