HI HB1225

Establishes a landlord low-income tenant tax credit under Hawaii's income tax law, allowing landlords to claim a deduction from net income tax liability for leasing units to low-income tenants.

Credit equals 50 percent of the difference between annual lease rent collected and the annual appraised fair market rental value, as determined by a licensed appraiser.

Applies only to qualified units (non-affordable housing units) with appraised property values not exceeding $2,000,000 leased for at least six months to eligible tenants earning no more than 80 percent of area median income.

Allows excess credits to be refunded to taxpayers with no income tax liability, with a $1 minimum threshold, and requires all claims to be filed within 12 months of the close of the taxable year or the right to claim is forfeited.

Effective for taxable years beginning after December 31, 2022, with the Director of Taxation authorized to prepare forms, require documentation, and adopt implementing rules.