HI HB1261

Establishes a 10% tax credit for landlords who lease dwelling units at or below 80% of median market rent, with unused credits carrying forward to subsequent tax years

Imposes an additional privilege tax on landlords charging rents at or above 120% of median market rent, starting at 5% with an additional 1% for every 10% above that threshold

Requires the Hawaii Housing Finance and Development Corporation to annually determine median market rent by geographic area using HUD and other reliable data sources

Landlords must obtain certification from HHFDC and submit rental agreement proof to the Department of Taxation to qualify for the below-market rent credit

Applies to taxable years beginning after December 31, 2024