HI HB116

Requires corporations subject to Hawaii income tax to report all income from foreign subsidiaries by filing IRS Form 5471 with the Department of Taxation

Mandates that all income from a corporation's foreign subsidiaries be apportioned as business income under Hawaii's existing apportionment formula (section 235-29)

Addresses corporate tax avoidance schemes where companies shift domestic earnings to offshore tax havens or low-tax countries

Hawaii currently loses an estimated $38 million annually by not requiring worldwide combined reporting of corporate income, according to a January 2019 report

Takes effect January 1, 2026