SB2821 Summary

• Conforms Hawaii income tax laws to the federal Internal Revenue Code as amended through February 9, 2018 for taxable years beginning after December 31, 2017

• Adds multiple Internal Revenue Code sections to Hawaii's non-operative list including Section 91 (foreign branch losses), Section 199A (qualified business income), Section 250 (foreign-derived intangible income), and Section 267A (hybrid transaction deductions)

• Updates partnership audit procedures to reference sections 6221, 6222, 6223, 6225, and 6226 of the Internal Revenue Code and requires taxpayers making federal elections under section 6221(b) to make the same election for Hawaii tax purposes

• Conforms Hawaii estate and generation-skipping transfer tax laws to the Internal Revenue Code as amended through December 21, 2017 for decedents dying after December 31, 2017

• Expands Hawaii transfer tax filing requirements to include cases where any tax is owed even if no federal transfer tax return is due, and allows deferral or installment payment elections for estates without federal tax liability