HI HB1388

Eliminates the home mortgage interest deduction for second homes under Hawaii income tax law by excluding Section 163(h)(4)(A)(i)(II) and Section 163(h)(4)(A)(ii)(II) of the Internal Revenue Code from Hawaii's operative tax provisions.

Applies to taxable years beginning after December 31, 2020, with an effective date of July 1, 2050.

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 before the convening of regular sessions in 2022, 2023, 2024, 2025, and 2026.

Makes conforming amendments to Hawaii Revised Statutes Section 235-2.4(j) to renumber existing exemptions and add the new provisions excluding the second home mortgage interest deduction.