HI SB2451

Eliminates the Hawaii state income tax deduction for home mortgage interest on second homes that are not used as a primary residence by the owner or a long-term tenant

Amends Section 235-2.4 of the Hawaii Revised Statutes to make certain federal Internal Revenue Code provisions regarding second home mortgage interest deductions inoperative for state tax purposes

Requires the Department of Budget and Finance, in consultation with the Department of Taxation, to submit annual reports to the legislature from 2027 through 2031 on the administration of the Act

Reports must include data on the number of second home mortgage interest deductions claimed, breakdown of resident vs. non-resident claimants, and geographic distribution of affected properties

Takes effect July 1, 2050, but applies to taxable years beginning after December 31, 2025