HB 1041 Summary

• Conforms Hawaii income tax laws to the federal Internal Revenue Code as amended through December 31, 2018 (updated from February 9, 2018), effective for taxable years beginning after December 31, 2018.

• Removes Section 1400Z-2 (opportunity zones) from the list of non-operative IRC provisions and makes Subchapter Z operative for Hawaii, but only for qualified opportunity zones designated by the state's chief executive officer.

• Conforms Hawaii estate and generation-skipping transfer tax laws to federal IRC Subtitle B as amended through December 31, 2018, effective for decedents dying or transfers occurring after December 31, 2018.

• Clarifies that the Hawaii applicable exclusion amount for estate tax purposes is calculated as if the decedent died on December 31, 2017, and adjusts references to federal tax code amendments.

• Makes technical revisions to sections addressing unrelated business taxable income for exempt organizations and partnership audit procedures under IRC Sections 6221-6226.