HI HB870

Conforms Hawaii income tax law under chapter 235, Hawaii Revised Statutes, to federal provisions regarding Paycheck Protection Program (PPP) loan forgiveness under section 7(a)(36) of the Small Business Act.

Excludes from gross income any amounts received by eligible PPP recipients when indebtedness is forgiven, consistent with Internal Revenue Ruling 2021-2 and section 7A(i) of the Small Business Act as amended.

Prohibits denial of deductions, reduction of tax attributes, or denial of basis increases for Hawaii tax purposes by reason of the federal gross income exclusion for PPP forgiveness.

Applies to taxable years ending after March 27, 2020, aligning with the federal PPP authorization date.

Takes effect upon approval.