HI SB2402

Amends Hawaii's low-income housing tax credit statute to clarify that taxpayers may claim the state credit regardless of whether they claim the federal low-income housing tax credit under Internal Revenue Code section 42.

For qualified low-income buildings receiving allocations after December 31, 2018, exempts state credits from federal restrictions including section 453 (installment method), section 465 (at-risk deductions), and section 469 (passive activity loss limitations).

Requires that state credit allocations to partners be made proportionally to each partner's allocation of credits, and caps state credits at 50 percent of federal credits allocated to the building.

Permits taxpayers to request a loan from the Hawaii housing finance and development corporation instead of claiming the state tax credit for certain federally-funded buildings, with election of the loan making them ineligible for the tax credit.

Takes effect July 1, 2030, and applies to qualified low-income buildings receiving credit allocations after December 31, 2018.