HI HB947

Disallows the dividends paid deduction for real estate investment trusts (REITs) under Hawaii tax law by making Internal Revenue Code Section 857(b)(2)(B) inoperative.

Subjects REIT dividends to the same tax treatment as dividends paid by other corporations under Hawaii state income tax.

Applies to taxable years beginning after December 31, 2025.

Amends Hawaii Revised Statutes Section 235-2.3(b) to add a new exclusion of federal tax code provisions related to REIT dividend deductions.