RELATING TO THE LOW-INCOME HOUSING TAX CREDIT.

Housing Taxes

Active

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

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

Plain English Breakdown

The effective date mentioned in the candidate explanation is incorrect and should not be included.

Low-Income Housing Tax Credit Changes

This bill clarifies rules about how low-income housing tax credits can be shared among partners and extends the time these credits are available until December 31, 2032.

What This Bill Does

Clarifies that a partner or member of a partnership or limited liability company allocated a low-income housing tax credit may further allocate the credit or transfer, sell, or assign all or part of it to any taxpayer.
Extends the sunset date for Act 129, SLH 2016, from December 31, 2027, to December 31, 2032.

Who It Names or Affects

People and businesses that own or manage low-income housing projects.
Taxpayers who receive the low-income housing tax credit.

Terms To Know

Low-Income Housing Tax Credit: A government program that gives money back to people who help build homes for those with lower incomes.
Partnership: A business where two or more people work together and share the profits and losses.

Limits and Unknowns

The bill does not specify how much of the tax credit can be shared.
It is unclear if there will be any changes to who qualifies for this tax credit after December 31, 2032.

Amendments

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

HD1

Hawaii published version HD1

Plain English: This amendment extends the sunset date for a low-income housing tax credit law to December 31, 2032, and clarifies that partnerships or limited liability companies can transfer their credits to other taxpayers.

Extends the expiration of Act 129 from December 31, 2027, to December 31, 2032.
Clarifies that a partnership or limited liability company allocated a low-income housing tax credit can transfer all or part of it to any taxpayer.

The amendment text does not provide details on how the transferred credits will be claimed by taxpayers.

HD2

Hawaii published version HD2

Extends the expiration date of Act 129 from December 31, 2027, to December 31, 2032.
Clarifies that a partnership or limited liability company allocated a low-income housing tax credit can transfer all or part of this credit to any person.

The amendment text does not provide details on how the transferred credits will be claimed by the recipient.

Bill History

2025-12-08 D
Carried over to 2026 Regular Session.
2025-02-12 H
Report adopted; referred to the committee(s) on FIN as amended in HD 2 with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Sayama, Ward excused (3).
2025-02-12 H
Reported from ECD (Stand. Com. Rep. No. 500) as amended in HD 2, recommending referral to FIN.
2025-02-07 H
The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Ilagan, Hussey, Holt, Tam, Templo, Todd, Matsumoto; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none.
2025-02-04 H
Bill scheduled to be heard by ECD on Friday, 02-07-25 10:15AM in House conference room 423 VIA VIDEOCONFERENCE.
2025-02-04 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on ECD with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Kong, Ward excused (3).
2025-02-04 H
Reported from HSG (Stand. Com. Rep. No. 135) as amended in HD 1, recommending passage on Second Reading and referral to ECD.
2025-01-29 H
The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Evslin, Miyake, Grandinetti, Kila, Kitagawa, La Chica, Muraoka, Pierick; Ayes with reservations: none; Noes: none; and 1 Excused: Representative(s) Cochran.
2025-01-27 H
Bill scheduled to be heard by HSG on Wednesday, 01-29-25 9:15AM in House conference room 430 VIA VIDEOCONFERENCE.
2025-01-23 H
Referred to HSG, ECD, FIN, referral sheet 3
2025-01-23 H
Introduced and Pass First Reading.
2025-01-21 H
Pending introduction.

Official Summary Text

RELATING TO THE LOW-INCOME HOUSING TAX CREDIT.
Low-Income Housing Tax Credit; Extension; Partners; Limited Liability Companies
Clarifies that 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 person. Extends the sunset date of Act 129, SLH 2016, relating to the low-income housing tax credit, from 12/31/2027 to 12/31/2032. Effective 7/1/3000. (HD2)

Current Bill Text

Read the full stored bill text

HB949

HOUSE OF REPRESENTATIVES

H.B. NO.

949

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to the low-income housing tax credit
.

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

����
SECTION
1
.
�
Section 235-110.8, Hawaii Revised Statutes,
is amended by amending subsection (b) to read as follows:

����
"(b)
�
Each taxpayer subject to the tax imposed by
this chapter, who has filed a net income tax return for a taxable year may
claim a low-income housing tax credit against the taxpayer's net income tax
liability.
�
The amount of the credit
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 on a timely basis.
�
A credit
under this section may be allocated by a partnership or limited liability
company in any manner agreed to by the partners or members regardless of
whether the individual or entity to receive the credit is deemed to be a
partner or member for federal income tax purposes, so long as the individual or
entity is deemed to be a partner or member pursuant to applicable state law.

����
A
partner or member that is a partnership or limited liability company that has
been allocated a credit may either further allocate the credit or transfer,
sell, or assign all or a portion of the credit to any taxpayer, whether or not
the taxpayer owns a direct or indirect interest in the qualified low-income
building; provided that for any tax year in which the credit is transferred,
sold, or assigned pursuant to this subsection, the transferor shall notify the department
of taxation of the transfer, sale, or assignment in the manner prescribed by
the department.

����
The credit
may be claimed whether or not the taxpayer is eligible to be allocated a
federal low-income housing tax credit pursuant to section 42 of the Internal
Revenue Code."

����
SECTION
2.
�
Act 129, Session Laws of Hawaii 2016,
as amended by Act 226, Session Laws of Hawaii 2021, is amended by amending
section 4 to read as follows:

����
"SECTION
4.
�
This Act, upon its approval, shall
take effect on January 1, 2017, and shall apply to qualified low-income
buildings awarded credits after December 31, 2016; provided that this Act shall
be repealed on December 31, [
2027,
]
2032,
and section 235-110.8,
Hawaii Revised Statutes, shall be reenacted in the form in which it read on the
day prior to the effective date of this Act."

����
SECTION 3.
�
Act 226, Session Laws of Hawaii 2021, is
amended by amending section 4 to read as follows:

����
"SECTION
4.
�
This Act shall take effect on July 1,
2021, and shall apply to taxable years beginning after December 31, 2020;
provided that the amendments made to section 235-110.8, Hawaii Revised
Statutes, by section 1 of this Act shall not be repealed when that section is
reenacted on December 31, [
2027,
]
2032,
pursuant to section 4 of
Act 129, Session Laws of Hawaii 2016, [
and
]
as amended by
section
2 of this Act[
.
]
, as amended by section 2 of Act ,
Session Laws of Hawaii 2025.
"

����
SECTION 4.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory material
is underscored.

����
SECTION 5.
�
This Act, upon its approval, shall apply to
taxable years beginning after December 31, 2024; provided that the amendments
made to section 235-110.8(b), Hawaii Revised Statutes, by section 1 of this Act
shall not be repealed when that section is reenacted on December 31, 2032,
pursuant to section 4 of Act 129, Session Laws of Hawaii 2016, as amended by
section 2 of Act 226, Session Laws of Hawaii 2021, as amended by section 2 of
this Act.

INTRODUCED BY:

_____________________________

Report Title:

Low-Income
Housing Tax Credit; Extension; Partners; Limited Liability Companies

Description:

Clarifies
that 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, Session Laws of Hawaii 2016, relating to the low-income housing tax
credit, from 12/31/2027 to 12/31/2032.

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