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Hawaii2026Enacted

HB1920

Hawaii Low-Income Housing Tax Credit Extension and Transfer Rules

Last scannedAug 24, 2026, 11:30 PM

In one sentence

This law extends the deadline for Hawaii's low-income housing tax credit program until December 31, 2032, and allows partnerships or limited liability companies to sell or transfer these credits to any taxpayer.

What it does

  • Extends the expiration date of Act 129 from its previous year to December 31, 2032.
  • Allows a partnership or limited liability company that receives a tax credit issued after July 1, 2026, to further allocate it among others.
  • Permits partnerships and limited liability companies with credits issued after July 1, 2026, to transfer, sell, or assign all or part of the credit to any taxpayer.
  • Requires the entity selling or transferring the credit to notify the Department of Taxation by the twentieth day of the first month following the end of the taxable year for which the credit may be claimed.
  • States that a taxpayer can claim this state tax credit even if they do not qualify for the federal low-income housing tax credit.

Who it affects

  • Partnerships and limited liability companies allocated Low-Income Housing Tax Credits issued after July 1, 2026.
  • Any taxpayer who purchases or receives a transferred portion of these credits.
  • The Hawaii Department of Taxation regarding notification requirements for credit transfers.

Limits and unknowns

  • These rules apply only to credits issued after July 1, 2026.
  • The law does not specify the price at which these credits may be sold or transferred.
  • State partners must follow applicable state laws regarding partnership status, but specific requirements are listed in other statutes.

Plain language

Terms to know

Low-Income Housing Tax Credit
A reduction in state income tax liability available to taxpayers who invest in qualified low-income housing buildings.
Sunset date
The specific date when a law or program automatically ends unless extended by the legislature.
Allocation
The act of assigning a portion of a tax credit to a partner, member, or another taxpayer.

Official record

Sources

Validated
Official bill pageIntroduced textCurrent bill textStored full record

Official summary

RELATING TO THE LOW-INCOME HOUSING TAX CREDIT. Low-Income Housing Tax Credit; Extension; Partners; Limited Liability Companies; Allocation Clarifies that, for tax credits issued after 7/1/2026, a partner or member that is a partnership or limited liability company that has been allocated a Low-Income Housing Tax Credit may either further allocate the credit or transfer, sell, or assign all or a portion of the credit to any taxpayer. Extends the sunset date of Act 129, SLH 2016, relating to the Low-Income Housing Tax Credit, until 12/31/2032. (CD1)

Official activity

Bill history

  1. Act 205, on 07/08/2026 (Gov. Msg. No. 1307).H
  2. Act 205, 07/08/2026 (Gov. Msg. No. 1307).S
  3. Received notice of passage on Final Reading in House (Hse. Com. No. 888).S
  4. Transmitted to Governor.H
  5. Passed Final Reading as amended in CD 1 with none voting aye with reservations; none voting no (0) and none excused (0).H
  6. Received notice of Final Reading (Sen. Com. No. 814).H
  7. Passed Final Reading, as amended (CD 1). Ayes, 24; Aye(s) with reservations: none. Noes, 0 (none). Excused, 1 (Senator(s) Fukunaga).S
  8. Deferred one day 05-06-26.H
  9. 48 Hrs. Notice (as amended CD 1) 05-01-26S
  10. Reported from Conference Committee as amended CD 1 (Conf. Com. Rep. No. 30-26).S
  11. Forty-eight (48) hours notice Friday, 05-01-26.H
  12. Reported from Conference Committee (Conf Com. Rep. No. 30-26) as amended in (CD 1).H
  13. The Conference Committee recommends that the measure be Passed, with Amendments. The votes were as follows: 3 Ayes: Representative(s) Evslin, Miyake, Muraoka; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.H
  14. The Conference committee recommends that the measure be PASSED, WITH AMENDMENTS. The votes of the Senate Conference Managers were as follows: 3 Aye(s): Senator(s) Chang, Hashimoto, Rhoads; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.S
  15. Conference Committee Meeting will reconvene on Tuesday 04-28-26 10:05AM in conference room 224.H
  16. Conference Committee Meeting will reconvene on Monday 04-27-26 10:05AM in conference room 224.H
  17. Bill scheduled for Conference Committee Meeting on Friday, 04-24-26 10:05AM in conference room 224.H
  18. Received notice of Senate conferees (Sen. Com. No. 717).H
  19. Senate Conferees Appointed: Chang Chair; Hashimoto Co-Chair; Rhoads.S
  20. Received notice of appointment of House conferees (Hse. Com. No. 786).S

Changes

Amendments

4 stored

CD1

This amendment allows partnerships to sell low-income housing tax credits to any taxpayer starting in July 2026 and extends the program's expiration date until December 31, 2032.

HD1

This amendment extends the low-income housing tax credit program until December 31, 2032, and allows partnerships to sell or transfer these credits to any taxpayer.

SD1

This amendment allows partnerships to sell low-income housing tax credits to any taxpayer starting in July 2026 and extends the program's expiration date until December 31, 2032.

SD2

This amendment allows partnerships to sell low-income housing tax credits to anyone starting in July 2026 and extends the program's expiration date until December 31, 2032.