S.B. 659 Summary

• Allows partnerships and limited liability companies to allocate low-income housing tax credits among partners or members in any manner agreed upon, regardless of federal income tax partnership status.

• Requires taxpayers claiming the low-income housing tax credit to include IRS Form 8609 with their tax return claims; permits initial claims based on carryover allocation letters if Form 8609 not yet received, with amended returns required upon receipt.

• For buildings placed in service after December 31, 2020, exempts investors from federal passive activity loss limitations (IRC sections 453, 465, and 469) and caps state credits at 50% of federal credits allocated over the 10-year federal credit period.

• Extends the sunset date of Act 129, Session Laws of Hawaii 2016 from December 31, 2021 to an unspecified future date, continuing enhanced low-income housing tax credit provisions for qualifying buildings.

• Effective December 1, 2050 for taxable years beginning after December 31, 2050.