HI HB486

Eliminates the mortgage interest deduction for second homes under Hawaii income tax law by making specific provisions of the Internal Revenue Code inapplicable.

Directs tax revenue generated by eliminating the second home mortgage interest deduction to be deposited into the Rental Housing Revolving Fund established under section 201H-202.

Requires the Department of Budget and Finance, in consultation with the Department of Taxation, to submit reports on the administration of this Act to the Legislature prior to the 2018, 2019, 2020, 2021, and 2022 regular sessions.

Takes effect on July 1, 2030, and applies to taxable years beginning after December 31, 2016.