HI HB1146

Amends Hawaii Revised Statutes Section 235-51.5(e) to require qualified members of electing pass-through entities to add to their taxable income their share of taxes paid by the entity under pass-through entity taxation.

Qualified members claiming a credit for pass-through entity taxes remain entitled to the credit but must now include the entity's tax payments in their income calculation, preventing a double benefit.

Maintains existing provisions allowing excess credits to be carried forward against net income tax liability in subsequent years until exhausted.

Applies to taxable years beginning after December 31, 2024.