SB1130 Summary

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

• Makes Internal Revenue Code Section 512(a)(7) regarding unrelated business taxable income non-operative for Hawaii tax purposes

• Adds operative status for Subchapter Z (sections 1400Z-1 to 1400Z-2) regarding opportunity zones, but limits application to zones designated by Hawaii's chief executive officer

• Conforms Hawaii estate and generation-skipping transfer tax laws to federal Internal Revenue Code subtitle B as amended through December 31, 2018, for decedents dying or transfers occurring after December 31, 2018

• Clarifies the Hawaiian applicable exclusion amount for estate tax purposes by referencing the federal applicable exclusion amount as if the decedent died on December 31, 2017