HB 2527 Summary

• Exempts qualified low-income buildings placed in service after December 31, 2019 from Internal Revenue Code sections 453 (installment method), 465 (at-risk deductions), and 469 (passive activity losses and credits) for state tax purposes.

• Extends the deadline to claim the low-income housing tax credit from 12 months to 24 months following the close of the taxable year, and requires submission of form 8609 issued by the corporation.

• Permits allocation of state housing tax credits among partners or members of a taxpayer who are admitted pursuant to Hawaii Revised Statutes section 425E-301, regardless of their federal tax partnership status.

• Caps total state credits allocated to qualified low-income buildings at no more than 50 percent of the amount of federal credits allocated for the ten-year federal credit period.

• Extends the sunset date of Act 129, Session Laws of Hawaii 2016 from December 31, 2021 to December 31, 2027; this act itself sunsets on July 1, 2027.