HI HB80

Clarifies that partnerships and limited liability companies may allocate the low-income housing tax credit to partners or members in any manner agreed to by the partners or members, regardless of federal tax classification, so long as they qualify as partners or members under state law.

Requires taxpayers claiming the credit to include a copy of Form 8609 issued by the corporation; allows first-year filers to claim the credit based on carryover allocation or 42(m) letter if Form 8609 has not yet been received, with requirement to amend returns upon receipt.

Removes application of federal tax provisions (sections 453, 465, and 469 of the Internal Revenue Code) for qualified low-income buildings placed in service after December 31, 2020, and limits state credits to fifty percent of federal credits allocated over 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, ensuring the modified credit provisions remain in effect longer.

Takes effect July 1, 2021, and applies to taxable years beginning after December 31, 2020.