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SB2675 • 2026

RELATING TO THE LOW-INCOME HOUSING TAX CREDIT.

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
HASHIMOTO, CHANG, RICHARDS
Last action
2026-02-19
Official status
Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.
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 THE LOW-INCOME HOUSING TAX CREDIT.

RELATING TO THE LOW-INCOME HOUSING TAX CREDIT.

What This Bill Does

  • RELATING TO THE LOW-INCOME HOUSING TAX CREDIT.
  • Low-Income Housing Tax Credit; Extension; Partners; Limited Liability Companies Clarifies that a partner or member of a partnership or limited liability company that has been allocated a low-income housing tax credit issued after July 1, 2026, 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.
  • Effective 7/1/2050.

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.

SD1

1

Hawaii published version SD1

Plain English: SB2675 SD1 THE SENATE S.B.

  • SB2675 SD1 THE SENATE S.B.
  • NO.
  • 2675 THIRTY-THIRD LEGISLATURE, 2026 S.D.
  • 1 STATE OF HAWAII A BILL FOR AN ACT RELATING TO THE LOW-INCOME HOUSING TAX CREDIT .

Bill History

  1. 2026-02-19 S

    Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.

  2. 2026-02-19 S

    Reported from HOU (Stand. Com. Rep. No. 2399) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

  3. 2026-02-10 S

    The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HOU were as follows: 5 Aye(s): Senator(s) Chang, Hashimoto, Elefante, Rhoads, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

  4. 2026-02-05 S

    The committee(s) on HOU deferred the measure until 02-10-26 1:00PM; Conference Room 225 & Videoconference.

  5. 2026-02-02 S

    The committee(s) on HOU has scheduled a public hearing on 02-05-26 1:01PM; Conference Room 225 & Videoconference.

  6. 2026-01-28 S

    Referred to HOU, WAM.

  7. 2026-01-26 S

    Passed First Reading.

  8. 2026-01-23 S

    Introduced.

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 of a partnership or limited liability company that has been allocated a low-income housing tax credit issued after July 1, 2026, 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. Effective 7/1/2050. (SD1)

Current Bill Text

Read the full stored bill text 
SB2675

THE SENATE

S.B. NO.

2675

THIRTY-THIRD LEGISLATURE, 2026

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 by the twentieth day of the first month
following the end of the taxable year for which the credit may be claimed.

����
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.
"

����
SECTION 4.
�

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

����
SECTION 5.
�

This Act, upon its approval, shall take effect on July 1, 2026, and
shall apply to taxable years beginning after December 31, 2025; 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, and 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, SLH 2016, relating to the low-income housing tax credit, until
12/31/2032.

The summary description
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not legislation or evidence of legislative intent.