HI HB759

Requires corporations to report all income from foreign subsidiaries by filing IRS Form 5471 with the Hawaii Department of Taxation, with such income apportioned as business income under state tax law effective January 1, 2026

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

Establishes a Corporate Tax Law Task Force within the Department of Taxation to annually review state corporate tax laws and recommend updates to close tax loopholes

Task force membership includes the Director of Taxation (as chair) and the Council on Revenues chairperson, with reports due to the legislature 20 days before each regular session starting in 2026

Aims to recover an estimated $38 million annually in lost state revenue from corporate offshore tax haven strategies through worldwide combined reporting requirements