HI SB34

Creates a temporary income tax credit for taxpayers who sell real property to qualified owner-occupants in Hawaii, deductible from net income tax liability.

Credit amount and cap to be determined (blanks in bill indicate pending specification of percentage rate and maximum credit limits).

Applies only to sales where the qualified transferee uses the property as their principal residence for at least 365 consecutive days with complete possessory control.

Credit may be carried forward to subsequent taxable years if it exceeds the taxpayer's annual tax liability; claims must be filed within 12 months of the taxable year end or are waived.

Effective for taxable years beginning after December 31, 2023, and sunsets December 31, 2028; includes recapture provisions if the qualified transferee fails to use the property as owner-occupant.