SB 2920 Summary

• Updates Hawaii income tax conformity to the federal Internal Revenue Code as amended through March 27, 2020, including provisions from the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136).

• Makes operative specific federal tax provisions including loan forgiveness exclusions (section 1106(i)), retirement plan loans (section 2202(b)), and charitable contributions (section 2205), while excluding recovery rebates from gross income.

• Maintains Hawaii's separate standard deduction amounts ($4,400 for joint filers; $3,212 for head of household; $2,200 for single and married filing separately) rather than adopting federal amounts.

• Updates Hawaii estate and generation-skipping transfer tax laws to conform to the federal Internal Revenue Code as amended through December 31, 2019.

• Applies to taxable years beginning after December 31, 2019, for income tax provisions and to decedents dying or transfers occurring after December 31, 2019, for estate and transfer tax provisions.