HI SB1465

Amends Hawaii Revised Statutes Section 235-51.5 to require qualified members of electing pass-through entities (S corporations, partnerships) to add their share of entity-level taxes paid to their own taxable income when claiming the pass-through entity tax credit

Maintains existing rule that qualified members receiving credits cannot deduct Hawaii state income taxes paid on their distributive share or guaranteed payment from the pass-through entity

Allows excess credits that exceed a qualified member's tax liability to be carried forward and applied against net income tax liability in subsequent years until exhausted

Applies to taxable years beginning after December 31, 2024

Effective date set for July 1, 3000 (placeholder date indicating legislative intent to delay implementation)