HI HCR189

Requests the Department of Taxation to conduct a comprehensive analysis of corporate income reporting practices, including the treatment of foreign subsidiary income, to support Hawaii's long-term fiscal planning.

Analysis must evaluate potential revenue impacts under three corporate income reporting models: separate entity reporting, water's-edge combined reporting, and worldwide combined reporting.

Department must assess administrative feasibility, compliance costs, enforcement implications, and how alternative tax base definitions would interact with Hawaii's current apportionment methodology.

Report must include comparison of approaches taken by other states, identify data limitations and modeling assumptions, and estimate revenue attributable to corporations with foreign subsidiary structures.

Findings due to the Legislature no later than twenty days prior to the Regular Session of 2027.