HI SB430

Amends Hawaii Revised Statutes section 231-23(d) to change the interest rate paid on tax refunds from one-third of one percent per month to the federal rate set by 26 U.S.C. section 6621(a)(1) applicable to January 1 of each year.

Changes interest calculation method from monthly to daily compounding for refunds not issued within 90 days of the tax return due date or filing date, whichever is later.

Applies the new interest rate and compounding method to refunds resulting from amended returns, director determinations, net operating loss carrybacks, and tax credits.

Takes effect July 1, 2025 and applies to taxable years beginning after December 31, 2024.