HI HB2329

Updates Hawaii's conformity to the federal Internal Revenue Code from December 31, 2024 to December 31, 2025 for determining gross income, adjusted gross income, and taxable income for tax years beginning after December 31, 2025.

Increases Hawaii's standard deduction amounts in phases: rising to $16,000 for joint filers by 2026, $20,000 by 2030, and $24,000 by 2031 (with proportional increases for other filing statuses).

Excludes several new federal tax provisions from Hawaii law, including IRC Section 139K (scholarships for elementary/secondary education), Section 139L (interest on rural/agricultural property loans), Section 174A (domestic research expenditures), Section 225 (qualified overtime compensation), and Section 1062 (gain from farmland sales to qualified farmers).

Makes technical amendments to estate and generation-skipping transfer tax provisions to conform with the updated Internal Revenue Code reference date.

Removes certain obsolete references related to real property tax deductions, disaster loss deductions, and motor vehicle sales tax deductions that are no longer operative under federal law.