HB 1145 Summary

• Updates Hawaii income tax law to conform to the Internal Revenue Code as amended through December 31, 2024, replacing the previous reference date of December 31, 2023, effective for taxable years beginning after December 31, 2024.

• Updates Hawaii estate and generation-skipping transfer tax law to conform to subtitle B of the Internal Revenue Code as amended through December 31, 2024, effective for decedents dying or transfers occurring after December 31, 2024.

• Makes sections 1, 2, and 3 of the Federal Disaster Tax Relief Act of 2023 (Public Law 118-148) operative for Hawaii tax purposes.

• Incorporates specific federal tax provisions related to pandemic relief, including loan forgiveness exclusions, retirement plan distributions, charitable contributions, and recovery rebates.

• Prior law continues to apply for determining property basis and income calculations in taxable years before the effective date.