HI HB149

Requires corporations subject to Hawaii state income tax to report all income from foreign subsidiaries by filing a copy of federal Internal Revenue Form 5471 with the Department of Taxation at the same time as filing with the Internal Revenue Service.

Mandates that all income from a corporation's foreign subsidiaries be apportioned as business income pursuant to Hawaii's existing apportionment formula under section 235-29.

Implements "worldwide combined reporting" to close tax loopholes used by corporations to shift domestic earnings to offshore tax havens and reduce state and federal income tax liability.

Addresses an estimated $38,000,000 in annual state revenue losses due to current tax laws not requiring worldwide combined reporting of corporate income.

Takes effect on January 1, 2023.