HI SB202

Eliminates the home mortgage interest deduction for second homes under Hawaii income tax law by making sections 163(h)(4)(A)(i)(II) and 163(h)(4)(A)(ii)(II) of the Internal Revenue Code inoperative for Hawaii tax purposes.

Requires all state revenue gained from eliminating the second home mortgage interest deduction to be deposited into the rental housing revolving fund established under section 201H-202.

Applies to taxable years beginning after December 31, 2020.

Requires the Department of Budget and Finance, in consultation with the Department of Taxation, to submit reports on the administration of this Act to the legislature no later than twenty days prior to the convening of the regular sessions in 2022, 2023, 2024, 2025, and 2026.