HI HB1803

Reduces the pass-through entity level tax rate from 11 percent (the highest individual income tax rate) to 9 percent for electing pass-through entities.

Allows excess tax credits that exceed a member's tax liability to be carried forward to subsequent years instead of being non-refundable.

Excludes corporations, partnerships, S corporations, tax-exempt entities, and other department-designated taxpayers from the entity-level tax.

Permits net losses calculated at the entity level to be carried forward to subsequent tax years until exhausted.

Takes effect July 1, 2040, and applies to taxable years beginning after December 31, 2023.