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HI HB2407

Bill

Official Source

Status

Introduced

1/28/2026

Primary Sponsor

Ikaika Hussey

Click for details

Origin

House of Representatives

2026 Regular Session

AI Summary

  • Establishes a new state net investment income tax on individuals, estates, and trusts in Hawaii, with the tax rate to be specified (left blank in the bill)
  • Tax applies to the lesser of either net investment income or federal modified adjusted gross income minus the threshold amount, following federal definitions from IRC Section 1411
  • Part-year residents pay a prorated tax based on the fraction of net investment income allocated to Hawaii
  • Net investment income includes interest on out-of-state municipal bonds and certain capital gains excluded under federal law (IRC Sections 1202 and 1400Z-2)
  • Takes effect upon approval by the Governor

Legislative Description

Relating To Net Investment Income Tax.

Taxation

Last Action

Referred to FIN, referral sheet 6

2/2/2026

Committee Referrals

Finance2/2/2026

Full Bill Text

No bill text available