HI HB1121

Excludes 100% of capital gains realized by fee simple owners from the sale of leased fee interest in condominium units, cooperative projects, or planned unit developments to the respective associations or housing corporations from Hawaii state income taxation.

Reestablishes a tax exemption previously provided under Act 166 (2007), which sunset on December 31, 2012, to encourage landowners to sell the fee interest in leasehold units.

Applies to taxable years beginning after December 31, 2022 and ending on or before December 31, 2029.

Defines key terms including "condominium project," "cooperative project," "fee simple owner," and "leased fee interest" by reference to sections 514C-1 and 516-1 of Hawaii Revised Statutes.

Becomes effective July 1, 3000, with the exemption automatically repealing on January 1, 2030, unless extended by the legislature.