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HB1214 • 2026

RELATING TO TAXATION.

RELATING TO TAXATION.

Housing Taxes
Active

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

Sponsor
PIERICK
Last action
2025-12-08
Official status
Carried over to 2026 Regular Session.
Effective date
Not listed

Plain English Breakdown

The bill summary and digest do not provide specific details about the distribution rules for certain entities or additional information required from taxpayers.

Landlord Resident Tenant Tax Credit

This bill establishes a new tax credit for landlords who lease dwelling units to resident tenants.

What This Bill Does

  • Establishes a landlord resident tenant tax credit that can be used by taxpayers to reduce their net income tax liability.
  • Sets the amount of the tax credit at $1,000 per dwelling unit leased by a qualified taxpayer to a qualified tenant.
  • Requires the director of taxation to create forms and rules for claiming this tax credit.
  • Allows any excess tax credit not used in one year to be carried over to future years until it is fully used.

Who It Names or Affects

  • Landlords who lease dwelling units to resident tenants.
  • Taxpayers subject to the income tax imposed under Chapter 235 of Hawaii Revised Statutes.

Terms To Know

Qualified taxpayer
A landlord who leases a dwelling unit to a qualified tenant.
Qualified tenant
A tenant verified as a resident of the State of Hawaii.

Limits and Unknowns

  • The bill does not specify how the tax credit will be distributed among partners, shareholders, or beneficiaries in certain entities.
  • It is unclear what additional information taxpayers may need to provide to claim this tax credit.

Bill History

  1. 2025-12-08 D

    Carried over to 2026 Regular Session.

  2. 2025-01-27 H

    Referred to ECD, CPC, FIN, referral sheet 4

  3. 2025-01-23 H

    Introduced and Pass First Reading.

  4. 2025-01-22 H

    Pending introduction.

Official Summary Text

RELATING TO TAXATION.
Income Tax; Landlord Resident Tenant Tax Credit
Establishes a landlord resident tenant tax credit.

Current Bill Text

Read the full stored bill text 
HB1214

HOUSE OF REPRESENTATIVES

H.B. NO.

1214

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to taxation
.

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

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SECTION
1.
�
Chapter 235, Hawaii Revised Statutes,
is amended by adding a new section to be appropriately designated and to read
as follows:

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"
�235-
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Landlord resident tenant
tax credit.
�
(a)
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There shall be allowed to each taxpayer subject to the tax imposed under
this chapter, a landlord resident tenant tax credit that shall be deductible
from the taxpayer's net income tax liability, if any, imposed by this chapter
for the taxable year in which the credit is properly claimed.

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(b)
�
In the case of a partnership, S corporation,
estate, or trust, the tax credit allowable is for dwelling units leased by the
entity for the taxable year.
�
The units
upon which the tax credit is computed shall be determined at the entity
level.
�
Distribution and share of credit
shall be determined by rule.

����
(c)
�
The landlord resident tenant tax credit shall
be equal to $1,000 per dwelling unit leased by a qualified taxpayer to a qualified
tenant.

����
(d)
�
The director of taxation:

����
(1)
�
Shall prepare any forms that may be
necessary to claim a tax credit under this section;

����
(2)
�
May require the taxpayer to furnish reasonable
information to ascertain the validity of the claim for the tax credit made
under this section; and

����
(3)
�
May adopt rules under chapter 91 necessary
to effectuate the purposes of this section.

����
(e)
�
If the tax credit under this section exceeds
the taxpayer's income tax liability, the excess of the credit over liability
may be used as a credit against the taxpayer's income tax liability in
subsequent years until exhausted.
�
All
claims for the tax credit under this section, including amended claims, shall
be filed on or before the end of the twelfth month following the close of the
taxable year for which the credit may be claimed.
�
Failure to comply with the foregoing
provision shall constitute a waiver of the right to claim the credit.

����
(f)
�
As used in this section:

����
"Dwelling
unit" has the same meaning as defined in section 521-8.

����
"Landlord"
has the same meaning as defined in section 521‑8.

����
"Qualified
taxpayer" means a landlord who leases a dwelling unit to a qualified
tenant.

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"Qualified
tenant" means a tenant who is verified as a resident of the State, as
defined is section 235-1.

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"Tenant"
has the same meaning as defined in section 521-8.
"

����
SECTION
2.
�
New statutory material is
underscored.

����
SECTION 3.
�
This Act, upon its approval, shall apply to
taxable years beginning after December 31, 2024.

INTRODUCED BY:

_____________________________

Report Title:

Income
Tax; Landlord Resident Tenant Tax Credit

Description:

Establishes
a landlord resident tenant tax credit.

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