HI SB2362

Requires the Department of Business, Economic Development, and Tourism to conduct a study on the impacts of eliminating the dividends paid deduction for real estate investment trusts (REITs) operating in Hawaii

Hawaii currently foregoes an estimated $26.8 million in tax revenue annually due to the REIT dividends paid deduction preference

A 2016 study found Hawaii received only $954,842 from in-state residents paying taxes on REIT dividend income, while out-of-state shareholders paid most REIT income taxes to other states

Appropriates an unspecified sum from general revenues for fiscal year 2026-2027 to fund the study

Requires DBEDT to submit findings, recommendations, and proposed legislation to the legislature no later than twenty days prior to the 2027 regular session