SB1465 • 2026

RELATING TO PASS-THROUGH ENTITY TAXATION.

Taxes

Active

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

Sponsor: KOUCHI (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

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

RELATING TO PASS-THROUGH ENTITY TAXATION.

What This Bill Does

RELATING TO PASS-THROUGH ENTITY TAXATION.
Taxation; Pass-Through Entities; S Corporations; Partnerships For taxable years beginning after 12/31/2024, requires all qualified members claiming a credit for pass-through entity taxation to adjust their income to include the qualified member's share of taxes paid by an electing pass-through entity.
Effective July 1, 3000.
(HD1)

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

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

HD1

Hawaii published version HD1

Plain English: SB1465 HD1 THE SENATE S.B.

SB1465 HD1 THE SENATE S.B.
NO.
1465 THIRTY-THIRD LEGISLATURE, 2025 S.D.
1 STATE OF HAWAII H.D.

SD1

Hawaii published version SD1

Plain English: SB1465 SD1 THE SENATE S.B.

SB1465 SD1 THE SENATE S.B.
NO.
1465 THIRTY-THIRD LEGISLATURE, 2025 S.D.
1 STATE OF HAWAII A BILL FOR AN ACT RELATING TO PASS-THROUGH ENTITY TAXATION.

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. 731).
2025-04-14 H
House Conferees Appointed: Takenouchi Chair; Holt, Reyes Oda.
2025-04-10 H
Received notice of disagreement (Sen. Com. No. 779).
2025-04-10 S
Senate disagrees with House amendments.
2025-04-10 S
Received from House (Hse. Com. No. 694).
2025-04-08 H
Passed Third Reading with none voting aye with reservations; Representative(s) Garcia, Muraoka, Shimizu voting no (3) and Representative(s) Cochran excused (1). Transmitted to Senate.
2025-04-04 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, Kapela excused (2).
2025-04-04 H
Reported from FIN (Stand. Com. Rep. No. 1947) as amended in HD 1, recommending passage on Second Reading and placement on the calendar for Third Reading.
2025-03-27 H
The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 13 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Keohokapu-Lee Loy, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Reyes Oda; Ayes with reservations: none; 0 Noes: none; and 3 Excused: Representative(s) Hussey, Alcos, Ward.
2025-03-24 H
Bill scheduled to be heard by FIN on Thursday, 03-27-25 2:00PM in House conference room 308 VIA VIDEOCONFERENCE.
2025-02-28 H
Referred to FIN, referral sheet 17
2025-02-19 H
Pass First Reading
2025-02-18 H
Received from Senate (Sen. Com. No. 4) in amended form (SD 1).
2025-02-18 S
Passed Third Reading, as amended (SD 1). Ayes, 22; Aye(s) with reservations: none . Noes, 0 (none). Excused, 3 (Senator(s) DeCoite, Gabbard, San Buenaventura). Transmitted to House.
2025-02-14 S
48 Hrs. Notice 02-18-25.
2025-02-14 S
Report adopted; Passed Second Reading, as amended (SD 1).
2025-02-14 S
Reported from WAM (Stand. Com. Rep. No. 547) with recommendation of passage on Second Reading, as amended (SD 1) and placement on the calendar for Third Reading.
2025-02-12 S
The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.
2025-02-07 S
The committee(s) on WAM has scheduled a public hearing on 02-12-25 10:00AM; Conference Room 211 & Videoconference.
2025-01-27 S
Referred to WAM.
2025-01-23 S
Introduced and passed First Reading.
2025-01-21 S
Pending Introduction.

Official Summary Text

RELATING TO PASS-THROUGH ENTITY TAXATION.
Taxation; Pass-Through Entities; S Corporations; Partnerships
For taxable years beginning after 12/31/2024, requires all qualified members claiming a credit for pass-through entity taxation to adjust their income to include the qualified member's share of taxes paid by an electing pass-through entity. Effective July 1, 3000. (HD1)

Current Bill Text

Read the full stored bill text

SB1465

THE SENATE

S.B. NO.

1465

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO PASS-THROUGH ENTITY TAXATION.

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

����
SECTION 1.
�
Section
235-51.5, Hawaii Revised Statutes, is amended by amending subsection (e) to read
as follows:

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"(e)
�

Each qualified member of an electing pass-through entity whose
distributive share or guaranteed payment of Hawaii taxable income is subject to
tax under this section shall be entitled to a credit equal to the qualified
member
'
s share of the tax paid pursuant to this section.
�
If the amount of the credit authorized by
this subsection exceeds the qualified member's tax liability imposed pursuant
to this chapter, the excess of the credit over liability may be used as a
credit against the member's net income tax liability in subsequent years until
exhausted.
�
Any qualified member claiming
a credit shall not be entitled to deduct from the member's Hawaii state taxable
income those amounts of Hawaii state income taxes paid by the member on the
qualified member's distributive share or guaranteed payment of income from the
electing pass-through entity.
�
Any
qualified member claiming a credit shall add to the qualified member's taxable
income the qualified member's share of taxes paid by an electing pass-through
entity under this section
."

����
SECTION 2.
�

New statutory material is underscored.

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SECTION 3.
�

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

INTRODUCED BY:

_____________________________

BY REQUEST

Report Title:

Taxation; Pass-Through Entities; S Corporations;
Partnerships

Description:

For taxable years beginning after December 31, 2024,
requires all qualified members claiming a credit for pass-through entity
taxation to adjust their income to include the qualified member's share of
taxes paid by an electing pass-through entity.

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