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HawaiiHB 11462025–2026 Regular Session (Year 1)HouseWALLET

RELATING TO PASS-THROUGH ENTITY TAXATION.

Sponsored By: Nadine K. Nakamura (Democratic)

Signed by Governor

Summary

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 for taxable years beginning after December 31, 2024. (SD1)

TaxationPass-Through EntitiesS CorporationsPartnershipsWAM

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Hawaii business owners face revised credit rules

These rules apply to tax years beginning after December 31, 2024. Qualified members of businesses electing Hawaii’s pass-through entity tax receive a credit equal to their share of that tax paid. Credit amounts above their Hawaii income tax bill carry forward to later years until used up. Members claiming the credit must add their share of the business’s tax paid to their Hawaii taxable income. They also cannot deduct Hawaii income taxes they pay on their share of business income or guaranteed payments.

Sponsors & Cosponsors

Sponsor

  • Nadine K. Nakamura

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 185 • No: 7

House vote • 4/24/2025

House Floor Vote

Yes: 43 • No: 6

Senate vote • 4/8/2025

Senate Floor Vote

Yes: 25 • No: 0

Senate vote • 4/1/2025

The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENT...

Yes: 11 • No: 0

House vote • 3/4/2025

House Floor Vote

Yes: 47 • No: 1

House vote • 2/28/2025

House Floor Vote

Yes: 47 • No: 0

House vote • 2/19/2025

The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The ...

Yes: 12 • No: 0

Actions Timeline

  1. Act 058, 05/15/2025 (Gov. Msg. No. 1158).

    5/15/2025Senate

  2. Act 058, on 05/15/2025 (Gov. Msg. No. 1158).

    5/15/2025House

  3. Received notice of House agreement and passage on Final Reading (Hse. Com. No. 813).

    4/25/2025Senate

  4. Transmitted to Governor.

    4/25/2025House

  5. Received notice of House reconsideration of action in disagreeing to the amendments proposed by the Senate (Hse. Com. No. 806).

    4/24/2025Senate

  6. House agrees to Senate amendment(s).

    4/24/2025House

  7. Passed Final Reading as amended in SD 1 with Representative(s) Reyes Oda voting aye with reservations; Representative(s) Garcia, Kong, Matsumoto, Muraoka, Pierick, Shimizu voting no (6) and Representative(s) Alcos, Cochran excused (2).

    4/24/2025House

  8. Received notice of discharge of all conferees (Hse. Com. No. 803).

    4/23/2025Senate

  9. Reconsideration of action taken on 04-10-25.

    4/23/2025House

  10. House Conferee(s) discharged.

    4/22/2025House

  11. Received notice of appointment of House conferees (Hse. Com. No. 732).

    4/15/2025Senate

  12. House Conferees Appointed: Takenouchi Chair; Holt, Alcos.

    4/14/2025House

  13. Received notice of disagreement (Hse. Com. No. 704).

    4/11/2025Senate

  14. House disagrees with Senate amendment (s).

    4/10/2025House

  15. Passed Third Reading, as amended (SD 1). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House.

    4/8/2025Senate

  16. Returned from Senate (Sen. Com. No. 735) in amended form (SD 1).

    4/8/2025House

  17. Reported from WAM (Stand. Com. Rep. No. 1671) with recommendation of passage on Second Reading, as amended (SD 1) and placement on the calendar for Third Reading.

    4/3/2025Senate

  18. Report adopted; Passed Second Reading, as amended (SD 1).

    4/3/2025Senate

  19. 48 Hrs. Notice 04-08-25.

    4/3/2025Senate

  20. 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.

    4/1/2025Senate

  21. The committee(s) on WAM deferred the measure until 04-01-25 10:00AM; Conference Room 211 & Videoconference.

    3/28/2025Senate

  22. The committee(s) on WAM has scheduled a public hearing on 03-28-25 10:00AM; Conference Room 211 & Videoconference.

    3/25/2025Senate

  23. Received from House (Hse. Com. No. 334).

    3/6/2025Senate

  24. Passed First Reading.

    3/6/2025Senate

  25. Referred to WAM.

    3/6/2025Senate

Bill Text

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