HI HB2149

Requires corporations to report all income from foreign subsidiaries to Hawaii's Department of Taxation by filing IRS Form 5471, with that income subject to the state's apportionment formula for taxation.

Mandates corporations file state-by-state reports detailing all profits, losses, revenues, inter-company transactions, and taxes paid in other states.

Addresses an estimated $38 million in annual state revenue loss caused by corporations shifting profits to offshore tax havens through complex schemes.

Establishes a Corporate Tax Law Task Force within the Department of Taxation, chaired by the director of taxation, to annually review corporate tax laws and recommend loophole closures, with reports due to the legislature starting in 2027.

Corporate income reporting requirements take effect January 1, 2027, with generated tax revenue deposited into the state general fund.