HI SB884

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

Reestablishes a previous tax incentive that was enacted in 2007 (Act 166) and expired on December 31, 2012, designed to encourage landowners to sell condominium lessees the fee interest in their units.

Applies to taxable years beginning after December 31, 2022 and ending prior to January 1, 2030, with the tax exemption automatically repealing on January 1, 2030.

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

Takes effect on July 1, 2050, though the tax exemption provisions apply to the 2023-2029 taxable year periods.