HI HB759

Requires corporations to report foreign subsidiary income to Hawaii by filing federal Internal Revenue Form 5471 with the Department of Taxation, effective January 1, 2026.

Applies Hawaii's apportionment formula to foreign subsidiary income to determine the portion subject to state corporate tax, with revenues deposited into the state general fund.

Mandates corporations report all profits, losses, revenues, inter-company transactions, and taxes paid in other states to the Department of Taxation.

Establishes a Corporate Tax Law Task Force within the Department of Taxation to annually review state corporate tax laws and recommend updates to close tax loopholes, with reports due to the legislature 20 days before each regular session beginning in 2026.

Estimates the state currently loses $38,000,000 annually by not requiring worldwide combined reporting of corporate income.