HB1145 • 2026

RELATING TO CONFORMITY TO THE INTERNAL REVENUE CODE.

Taxes

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: NAKAMURA (Introduced by request of another party)
Last action: 2026-04-02
Official status: Received notice of the discharge of all House Conferees (Hse. Com. No. 457).
Effective date: Not listed

Plain English Breakdown

The official source material does not provide details on the specific changes or impacts of the conformity to Hawaii's tax laws, leaving some uncertainty about how it will affect taxpayers.

Making Hawaii Taxes Match Federal Rules

This bill makes Hawaii's income, estate, and generation-skipping transfer tax laws match the federal Internal Revenue Code as of December 31, 2024.

What This Bill Does

Changes Hawaii's income tax rules to follow the federal Internal Revenue Code for taxable years starting after December 31, 2024.
Updates Hawaii's estate and generation-skipping transfer tax laws to match the federal Internal Revenue Code as of December 31, 2024.

Who It Names or Affects

People and businesses who pay income tax in Hawaii.
Individuals with estates or generation-skipping transfers in Hawaii.

Terms To Know

Internal Revenue Code: The main body of federal tax laws in the United States.
Generation-Skipping Transfer Tax: A tax on gifts or bequests made to grandchildren or later generations, skipping a generation.

Limits and Unknowns

The bill does not specify how it will affect Hawaii's tax laws before December 31, 2024.
It is unclear what specific changes this conformity might bring for taxpayers in Hawaii.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: This amendment updates Hawaii's income, estate, and generation-skipping transfer tax laws to align with the Internal Revenue Code as of December 31, 2024.

Updates Hawaii's tax laws for income, estates, and generation-skipping transfers to match the federal Internal Revenue Code effective from January 1, 2025.
Includes specific sections of recent federal disaster relief acts that will apply in Hawaii starting from December 31, 2024.

The amendment text does not specify all the details about how prior laws will be applied for earlier years, which could create some uncertainty.
Some parts of the federal Internal Revenue Code and related public laws are excluded from this update, but it's unclear exactly which provisions those are.

SD1

Hawaii published version SD1

Plain English: This amendment updates Hawaii's income tax laws to match the Internal Revenue Code as of December 31, 2024, and includes specific federal disaster relief provisions.

Updates Hawaii's income tax laws to conform with the Internal Revenue Code as of December 31, 2024.
Includes certain sections from recent federal laws that provide disaster tax relief in Hawaii’s tax code.

The amendment text includes many technical references to specific sections of federal law which are not fully explained here.
It is unclear how all the referenced federal provisions will interact with existing state tax laws without further explanation.

Bill History

2026-04-02 S
Received notice of the discharge of all House Conferees (Hse. Com. No. 457).
2026-04-01 H
House Conferee(s) discharged.
2025-12-08 D
Carried over to 2026 Regular Session.
2025-04-15 S
Received notice of appointment of House conferees (Hse. Com. No. 732).
2025-04-14 H
House Conferees Appointed: Yamashita Chair; Takenouchi, Alcos.
2025-04-11 S
Received notice of disagreement (Hse. Com. No. 704).
2025-04-10 H
House disagrees with Senate amendment (s).
2025-04-08 H
Returned from Senate (Sen. Com. No. 734) in amended form (SD 1).
2025-04-08 S
Passed Third Reading, as amended (SD 1). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House.
2025-04-03 S
48 Hrs. Notice 04-08-25.
2025-04-03 S
Report adopted; Passed Second Reading, as amended (SD 1).
2025-04-03 S
Reported from WAM (Stand. Com. Rep. No. 1670) with recommendation of passage on Second Reading, as amended (SD 1) and placement on the calendar for Third Reading.
2025-04-01 S
The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 11 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) DeCoite, Wakai.
2025-03-28 S
The committee(s) on WAM deferred the measure until 04-01-25 10:00AM; Conference Room 211 & Videoconference.
2025-03-25 S
The committee(s) on WAM has scheduled a public hearing on 03-28-25 10:00AM; Conference Room 211 & Videoconference.
2025-03-06 S
Referred to WAM.
2025-03-06 S
Passed First Reading.
2025-03-06 S
Received from House (Hse. Com. No. 333).
2025-03-04 H
Passed Third Reading with Representative(s) Iwamoto voting aye with reservations; none voting no (0) and Representative(s) Kapela, Pierick, Ward excused (3). Transmitted to Senate.
2025-02-28 H
Passed Second Reading as amended in HD 1; placed on the calendar for Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Pierick, Templo, Ward excused (4).
2025-02-28 H
Reported from FIN (Stand. Com. Rep. No. 998) as amended in HD 1, recommending passage on Second Reading and placement on the calendar for Third Reading.
2025-02-19 H
The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 12 Ayes: Representative(s) Yamashita, Takenouchi, Holt, Hussey, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Reyes Oda; Ayes with reservations: none; Noes: none; and 4 Excused: Representative(s) Grandinetti, Keohokapu-Lee Loy, Alcos, Ward.
2025-02-14 H
Bill scheduled to be heard by FIN on Wednesday, 02-19-25 2:00PM in House conference room 308 VIA VIDEOCONFERENCE.
2025-01-23 H
Referred to FIN, referral sheet 3
2025-01-23 H
Introduced and Pass First Reading.
2025-01-21 H
Pending introduction.

Official Summary Text

RELATING TO CONFORMITY TO THE INTERNAL REVENUE CODE.
Conformity to the Internal Revenue Code for 2024; Income Tax; Estate and Generation-Skipping Transfer Tax; Federal Disaster Tax Relief Act of 2023
Conforms Hawaii income and estate and generation-skipping transfer tax laws to the Internal Revenue Code of 1986, as amended as of December 31, 2024. (SD1)

Current Bill Text

Read the full stored bill text

HB1145

HOUSE OF REPRESENTATIVES

H.B. NO.

1145

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO CONFORMITY TO THE INTERNAL REVENUE CODE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION 1.
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The purpose of
this Act is to conform Hawaii income and estate and generation-skipping
transfer tax laws to the Internal Revenue Code.

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SECTION 2.
�
Section
235-2.3, Hawaii Revised Statutes, is amended by amending subsection (a) to read
as follows:

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"(a)
�
For all taxable
years beginning after December 31, [
2023,
]
2024,
as used in this
chapter, except as provided in this section and sections 235-2.35, 235-2.4, and
235-2.45, "Internal Revenue Code" means subtitle A, chapter 1, of the
federal Internal Revenue Code of 1986, as amended as of December 31, [
2023,
]

2024,
as it applies to the determination of gross income, adjusted gross
income, ordinary income and loss, and taxable income, except those provisions
of the Internal Revenue Code which, pursuant to this chapter, do not apply or
are otherwise limited in application.

����
Sections 9672(1) (relating to tax treatment of targeted EIDL
advances) and 9673(1) (relating to tax treatment of restaurant revitalization
grants) of Public Law 117-2 shall be operative for purposes of this
chapter.
�
No amount received under
section 9601 (relating to 2021 recovery rebates to individuals) of Public Law
117-2 shall be included in gross income for purposes of this chapter.

����
Sections 276(b)(1) (relating to subsequent
paycheck protection program loans), 277 (relating to emergency financial aid
grants), 278(b)(1) (relating to emergency EIDL grants and targeted EIDL
advances), 278(c)(1) (relating to subsidy for certain loan payments), and
278(d)(1) (relating to grants for shuttered venue operators) of Division N of
Public Law 116-260 shall be operative for purposes of this chapter.
�
Sections 213 (relating to modification of
limitations on charitable contributions) and 214 (relating to temporary special
rules for health and dependent care flexible spending arrangements) of Division
EE of Public Law 116-260 shall be operative for purposes of this chapter.
�
Sections 301, 302, and 304 (relating to
disaster tax relief) of Division EE of Public Law 116-260 shall be operative
for purposes of this chapter.
�
No amount
received under section 272 (relating to additional 2020 recovery rebates for
individuals) of Division N of Public Law 116-260 shall be included in gross
income for purposes of this chapter.

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Sections 1106(i) (relating to exclusion of
loan forgiveness from gross income), 2202(b) (relating to loans from retirement
plans), and 2205 (relating to charitable contributions) of Public Law 116-136
shall be operative for purposes of this chapter.
�
No amount received under section 2201
(relating to recovery rebates) of Public Law 116-136 shall be included in gross
income for purposes of this chapter.

����
Section 2202(a) (relating to tax-favored
withdrawals from retirement plans) of Public Law 116-136 shall be operative for
purposes of this chapter and shall apply to taxable years beginning after
December 31, 2019.

����
Prior law shall continue to be used to determine:

����
(1)
�
The
basis of property, if a taxpayer first determined the basis of property in a
taxable year to which prior law applies; and

����
(2)
�
Gross
income, adjusted gross income, ordinary income and loss, and taxable income for
a taxable year to which prior law applies."

����
SECTION 3.
�

Section 236E-3, Hawaii Revised Statutes, is amended to read as follows:

����
"
�236E-3
�
Conformance to the Internal Revenue Code;
general application
.
�
For all
decedents dying, or transfers occurring, after December 31, [
2023,
]
2024,

as used in this chapter, "Internal Revenue Code" means subtitle B of
the federal Internal Revenue Code of 1986, as amended as of December 31, [
2023,
]

2024,
as it applies to the determination of gross estate, adjusted gross
estate, federal taxable estate, and generation-skipping transfers, except those
provisions of the Internal Revenue Code and federal public laws that, pursuant
to this chapter, do not apply or are otherwise limited in application."

����
SECTION 4.
�

Statutory material to be repealed is bracketed and stricken.
�
New statutory material is underscored.

����
SECTION 5.
�

This Act shall take effect upon its approval; provided that:

����
(1)
�
Section
2 shall apply to taxable years beginning after December 31, 2024; and

����
(2)
�
Section 3 shall apply to decedents dying or
taxable transfers occurring after December 31, 2024.

INTRODUCED BY:

_____________________________

BY REQUEST

Report Title:

Conformity to the Internal Revenue Code for 2024; Income
Tax; Estate and Generation-Skipping Transfer Tax

Description:

Conforms Hawaii income and estate and generation-skipping
transfer tax laws to the Internal Revenue Code of 1986, as amended as of
December 31, 2024.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.