SB2255 Summary

• Eliminates the mortgage interest deduction for second homes under Hawaii income tax law by making non-operative Section 163(h)(4)(A)(i)(II) and Section 163(h)(4)(A)(ii)(II) of the Internal Revenue Code.

• Requires the Department of Taxation to annually calculate state revenue gained from eliminating the second home mortgage interest deduction and report the amount to the Director of Finance by September 1.

• Directs the Department of Budget and Finance to submit reports on implementation to the legislature no later than 20 days before the 2023, 2024, 2025, and 2026 regular legislative sessions.

• Applies to taxable years beginning after December 31, 2021.