HI HB2332

Allows taxpayers to claim Hawaii's low-income housing tax credit regardless of whether they claim the federal low-income housing tax credit under Internal Revenue Code section 42.

For buildings receiving allocations after December 31, 2016, limits state tax credits to the amount of federal credits allocated in the first five years, with a sixth-year catch-up provision if needed, and zero credits thereafter.

Excludes Internal Revenue Code sections 453 (installment method), 465 (at-risk deductions), and 469 (passive activity losses) from applying to state low-income housing tax credit claims for buildings receiving allocations after December 31, 2018.

Caps state low-income housing tax credits at 50 percent of federal credits allocated to the same building for allocations after December 31, 2018.

Requires income, loss, and deduction allocations to partners to be made proportionally to their allocation of credits under this section for buildings receiving allocations after December 31, 2018.