HB 1145: Conformity to the Internal Revenue Code for 2024; Income Tax; Estate and Generation-Skipping Transfer Tax; Federal Disaster Tax Relief Act of 2023
- Session Year: 2025-2026
- House: House
- Latest Version Date: 2025-04-03
Current Status:
Failed
(2026-04-02: Received notice of the discharge of all House Conferees (Hse. Com. No. 457).)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
Conforms Hawaii income and estate and generation-skipping transfer tax laws to the Internal Revenue Code of 1986, as amended as of December 31, 2024. (SD1)
Conforms Hawaii income and estate and generation-skipping transfer tax laws to the Internal Revenue Code of 1986, as amended as of December 31, 2024. Effective 7/1/3000. (HD1)
Conforms Hawaii income and estate and generation-skipping transfer tax laws to the Internal Revenue Code of 1986, as amended as of December 31, 2024.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1145 |
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THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 1 |
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STATE OF HAWAII |
S.D. 1 |
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A BILL FOR AN ACT
RELATING TO CONFORMITY TO THE INTERNAL REVENUE CODE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 2. Section 235-2.3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a)
For all taxable years beginning after December 31, [2023,] 2024,
as used in this chapter, except as provided in this section and sections
235-2.35, 235-2.4, and 235-2.45, "Internal Revenue Code" means
subtitle A, chapter 1, of the federal Internal Revenue Code of 1986, as amended
as of December 31, [2023,] 2024, as it applies to the
determination of gross income, adjusted gross income, ordinary income and loss,
and taxable income, except those provisions of the Internal Revenue Code which,
pursuant to this chapter, do not apply or are otherwise limited in application.
Sections 1, 2, and 3 (relating to disaster tax relief) of Public Law 118-148 shall be operative for the purposes of this chapter.
Sections 9672(1) (relating to tax treatment of targeted EIDL advances) and 9673(1) (relating to tax treatment of restaurant revitalization grants) of Public Law 117-2 shall be operative for purposes of this chapter. No amount received under section 9601 (relating to 2021 recovery rebates to individuals) of Public Law 117-2 shall be included in gross income for purposes of this chapter.
Sections 276(b)(1) (relating to subsequent paycheck protection program loans), 277 (relating to emergency financial aid grants), 278(b)(1) (relating to emergency EIDL grants and targeted EIDL advances), 278(c)(1) (relating to subsidy for certain loan payments), and 278(d)(1) (relating to grants for shuttered venue operators) of Division N of Public Law 116-260 shall be operative for purposes of this chapter. Sections 213 (relating to modification of limitations on charitable contributions) and 214 (relating to temporary special rules for health and dependent care flexible spending arrangements) of Division EE of Public Law 116-260 shall be operative for purposes of this chapter. Sections 301, 302, and 304 (relating to disaster tax relief) of Division EE of Public Law 116-260 shall be operative for purposes of this chapter. No amount received under section 272 (relating to additional 2020 recovery rebates for individuals) of Division N of Public Law 116-260 shall be included in gross income for purposes of this chapter.
Sections 1106(i) (relating to exclusion of loan forgiveness from gross income), 2202(b) (relating to loans from retirement plans), and 2205 (relating to charitable contributions) of Public Law 116-136 shall be operative for purposes of this chapter. No amount received under section 2201 (relating to recovery rebates) of Public Law 116-136 shall be included in gross income for purposes of this chapter.
Section 2202(a) (relating to tax-favored withdrawals from retirement plans) of Public Law 116-136 shall be operative for purposes of this chapter and shall apply to taxable years beginning after December 31, 2019.
Prior law shall continue to be used to determine:
(1) The basis of property, if a taxpayer first determined the basis of property in a taxable year to which prior law applies; and
(2) Gross income, adjusted gross income, ordinary income and loss, and taxable income for a taxable year to which prior law applies."
SECTION 3. Section 236E-3, Hawaii Revised Statutes, is amended to read as follows:
"§236E-3 Conformance to the Internal Revenue Code;
general application. For all
decedents dying, or transfers occurring, after December 31, [2023,] 2024,
as used in this chapter, "Internal Revenue Code" means subtitle B of
the federal Internal Revenue Code of 1986, as amended as of December 31, [2023,]
2024, as it applies to the determination of gross estate, adjusted gross
estate, federal taxable estate, and generation‑skipping transfers, except
those provisions of the Internal Revenue Code and federal public laws that,
pursuant to this chapter, do not apply or are otherwise limited in
application."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval; provided that:
(1) Section 2 shall apply to taxable years beginning after December 31, 2024; and
(2) Section 3 shall apply to decedents dying or taxable transfers occurring after December 31, 2024.
Report Title:
Conformity to the Internal Revenue Code for 2024; Income Tax; Estate and Generation-Skipping Transfer Tax; Federal Disaster Tax Relief Act of 2023
Description:
Conforms Hawaii income and estate and generation-skipping transfer tax laws to the Internal Revenue Code of 1986, as amended as of December 31, 2024. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1145 |
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THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CONFORMITY TO THE INTERNAL REVENUE CODE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 2. Section 235-2.3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) For all taxable
years beginning after December 31, [2023,] 2024, as used in this
chapter, except as provided in this section and sections 235-2.35, 235-2.4, and
235-2.45, "Internal Revenue Code" means subtitle A, chapter 1, of the
federal Internal Revenue Code of 1986, as amended as of December 31, [2023,]
2024, as it applies to the determination of gross income, adjusted gross
income, ordinary income and loss, and taxable income, except those provisions
of the Internal Revenue Code which, pursuant to this chapter, do not apply or
are otherwise limited in application.
Sections 1, 2, and 3 (relating to disaster tax relief) of Public Law 118-148 shall be operative for the purposes of this chapter.
Sections 9672(1) (relating to tax treatment of targeted EIDL advances) and 9673(1) (relating to tax treatment of restaurant revitalization grants) of Public Law 117-2 shall be operative for purposes of this chapter. No amount received under section 9601 (relating to 2021 recovery rebates to individuals) of Public Law 117-2 shall be included in gross income for purposes of this chapter.
Sections 276(b)(1) (relating to subsequent paycheck protection program loans), 277 (relating to emergency financial aid grants), 278(b)(1) (relating to emergency EIDL grants and targeted EIDL advances), 278(c)(1) (relating to subsidy for certain loan payments), and 278(d)(1) (relating to grants for shuttered venue operators) of Division N of Public Law 116-260 shall be operative for purposes of this chapter. Sections 213 (relating to modification of limitations on charitable contributions) and 214 (relating to temporary special rules for health and dependent care flexible spending arrangements) of Division EE of Public Law 116-260 shall be operative for purposes of this chapter. Sections 301, 302, and 304 (relating to disaster tax relief) of Division EE of Public Law 116-260 shall be operative for purposes of this chapter. No amount received under section 272 (relating to additional 2020 recovery rebates for individuals) of Division N of Public Law 116-260 shall be included in gross income for purposes of this chapter.
Sections 1106(i) (relating to exclusion of loan forgiveness from gross income), 2202(b) (relating to loans from retirement plans), and 2205 (relating to charitable contributions) of Public Law 116-136 shall be operative for purposes of this chapter. No amount received under section 2201 (relating to recovery rebates) of Public Law 116-136 shall be included in gross income for purposes of this chapter.
Section 2202(a) (relating to tax-favored withdrawals from retirement plans) of Public Law 116-136 shall be operative for purposes of this chapter and shall apply to taxable years beginning after December 31, 2019.
Prior law shall continue to be used to determine:
(1) The basis of property, if a taxpayer first determined the basis of property in a taxable year to which prior law applies; and
(2) Gross income, adjusted gross income, ordinary income and loss, and taxable income for a taxable year to which prior law applies."
SECTION 3. Section 236E-3, Hawaii Revised Statutes, is amended to read as follows:
"§236E-3 Conformance to the Internal Revenue Code;
general application. For all
decedents dying, or transfers occurring, after December 31, [2023,] 2024,
as used in this chapter, "Internal Revenue Code" means subtitle B of
the federal Internal Revenue Code of 1986, as amended as of December 31, [2023,]
2024, as it applies to the determination of gross estate, adjusted gross
estate, federal taxable estate, and generation-skipping transfers, except those
provisions of the Internal Revenue Code and federal public laws that, pursuant
to this chapter, do not apply or are otherwise limited in application."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 3000; provided that:
(1) Section 2 shall apply to taxable years beginning after December 31, 2024; and
(2) Section 3 shall apply to decedents dying or taxable transfers occurring after December 31, 2024.
Report Title:
Conformity to the Internal Revenue Code for 2024; Income Tax; Estate and Generation-Skipping Transfer Tax; Federal Disaster Tax Relief Act of 2023
Description:
Conforms Hawaii income and estate and generation-skipping transfer tax laws to the Internal Revenue Code of 1986, as amended as of December 31, 2024. Effective 7/1/3000. (HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1145 |
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THIRTY-THIRD LEGISLATURE, 2025 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CONFORMITY TO THE INTERNAL REVENUE CODE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 2. Section 235-2.3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) For all taxable
years beginning after December 31, [2023,] 2024, as used in this
chapter, except as provided in this section and sections 235-2.35, 235-2.4, and
235-2.45, "Internal Revenue Code" means subtitle A, chapter 1, of the
federal Internal Revenue Code of 1986, as amended as of December 31, [2023,]
2024, as it applies to the determination of gross income, adjusted gross
income, ordinary income and loss, and taxable income, except those provisions
of the Internal Revenue Code which, pursuant to this chapter, do not apply or
are otherwise limited in application.
Sections 9672(1) (relating to tax treatment of targeted EIDL advances) and 9673(1) (relating to tax treatment of restaurant revitalization grants) of Public Law 117-2 shall be operative for purposes of this chapter. No amount received under section 9601 (relating to 2021 recovery rebates to individuals) of Public Law 117-2 shall be included in gross income for purposes of this chapter.
Sections 276(b)(1) (relating to subsequent paycheck protection program loans), 277 (relating to emergency financial aid grants), 278(b)(1) (relating to emergency EIDL grants and targeted EIDL advances), 278(c)(1) (relating to subsidy for certain loan payments), and 278(d)(1) (relating to grants for shuttered venue operators) of Division N of Public Law 116-260 shall be operative for purposes of this chapter. Sections 213 (relating to modification of limitations on charitable contributions) and 214 (relating to temporary special rules for health and dependent care flexible spending arrangements) of Division EE of Public Law 116-260 shall be operative for purposes of this chapter. Sections 301, 302, and 304 (relating to disaster tax relief) of Division EE of Public Law 116-260 shall be operative for purposes of this chapter. No amount received under section 272 (relating to additional 2020 recovery rebates for individuals) of Division N of Public Law 116-260 shall be included in gross income for purposes of this chapter.
Sections 1106(i) (relating to exclusion of loan forgiveness from gross income), 2202(b) (relating to loans from retirement plans), and 2205 (relating to charitable contributions) of Public Law 116-136 shall be operative for purposes of this chapter. No amount received under section 2201 (relating to recovery rebates) of Public Law 116-136 shall be included in gross income for purposes of this chapter.
Section 2202(a) (relating to tax-favored withdrawals from retirement plans) of Public Law 116-136 shall be operative for purposes of this chapter and shall apply to taxable years beginning after December 31, 2019.
Prior law shall continue to be used to determine:
(1) The basis of property, if a taxpayer first determined the basis of property in a taxable year to which prior law applies; and
(2) Gross income, adjusted gross income, ordinary income and loss, and taxable income for a taxable year to which prior law applies."
SECTION 3. Section 236E-3, Hawaii Revised Statutes, is amended to read as follows:
"§236E-3 Conformance to the Internal Revenue Code;
general application. For all
decedents dying, or transfers occurring, after December 31, [2023,] 2024,
as used in this chapter, "Internal Revenue Code" means subtitle B of
the federal Internal Revenue Code of 1986, as amended as of December 31, [2023,]
2024, as it applies to the determination of gross estate, adjusted gross
estate, federal taxable estate, and generation-skipping transfers, except those
provisions of the Internal Revenue Code and federal public laws that, pursuant
to this chapter, do not apply or are otherwise limited in application."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval; provided that:
(1) Section 2 shall apply to taxable years beginning after December 31, 2024; and
(2) Section 3 shall apply to decedents dying or taxable transfers occurring after December 31, 2024.
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INTRODUCED BY: |
_____________________________ |
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BY REQUEST |
Report Title:
Conformity to the Internal Revenue Code for 2024; Income Tax; Estate and Generation-Skipping Transfer Tax
Description:
Conforms Hawaii income and estate and generation-skipping transfer tax laws to the Internal Revenue Code of 1986, as amended as of December 31, 2024.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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Date
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Status
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| Apr 2, 2026 | Received notice of the discharge of all House Conferees (Hse. Com. No. 457). |
| Apr 1, 2026 | House Conferee(s) discharged. |
| Dec 8, 2025 | Carried over to 2026 Regular Session. |
| Apr 15, 2025 | Received notice of appointment of House conferees (Hse. Com. No. 732). |
| Apr 14, 2025 | House Conferees Appointed: Yamashita Chair; Takenouchi, Alcos. |
| Apr 11, 2025 | Received notice of disagreement (Hse. Com. No. 704). |
| Apr 10, 2025 | House disagrees with Senate amendment (s). |
| Apr 8, 2025 | Returned from Senate (Sen. Com. No. 734) in amended form (SD 1). |
| Apr 8, 2025 | Passed Third Reading, as amended (SD 1). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House. |
| Apr 3, 2025 | 48 Hrs. Notice 04-08-25. |
| Apr 3, 2025 | Report adopted; Passed Second Reading, as amended (SD 1). |
| Apr 3, 2025 | Reported from WAM (Stand. Com. Rep. No. 1670) with recommendation of passage on Second Reading, as amended (SD 1) and placement on the calendar for Third Reading. |
| Apr 1, 2025 | 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. |
| Mar 28, 2025 | The committee(s) on WAM deferred the measure until 04-01-25 10:00AM; Conference Room 211 & Videoconference. |
| Mar 25, 2025 | The committee(s) on WAM has scheduled a public hearing on 03-28-25 10:00AM; Conference Room 211 & Videoconference. |
| Mar 6, 2025 | Referred to WAM. |
| Mar 6, 2025 | Passed First Reading. |
| Mar 6, 2025 | Received from House (Hse. Com. No. 333). |
| Mar 4, 2025 | Passed Third Reading with Representative(s) Iwamoto voting aye with reservations; none voting no (0) and Representative(s) Kapela, Pierick, Ward excused (3). Transmitted to Senate. |
| Feb 28, 2025 | 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, Pierick, Templo, Ward excused (4). |
| Feb 28, 2025 | Reported from FIN (Stand. Com. Rep. No. 998) as amended in HD 1, recommending passage on Second Reading and placement on the calendar for Third Reading. |
| Feb 19, 2025 | The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 12 Ayes: Representative(s) Yamashita, Takenouchi, Holt, Hussey, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Reyes Oda; Ayes with reservations: none; Noes: none; and 4 Excused: Representative(s) Grandinetti, Keohokapu-Lee Loy, Alcos, Ward. |
| Feb 14, 2025 | Bill scheduled to be heard by FIN on Wednesday, 02-19-25 2:00PM in House conference room 308 VIA VIDEOCONFERENCE. |
| Jan 23, 2025 | Referred to FIN, referral sheet 3 |
| Jan 23, 2025 | Introduced and Pass First Reading. |
| Jan 21, 2025 | Pending introduction. |
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Date
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Description
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Location
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Votes
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| Apr 8, 2025 | Third Reading | Senate Floor |
Passed |
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| Apr 1, 2025 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Ways and Means |
Passed |
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| Mar 4, 2025 | Third Reading | House Floor |
Passed |
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| Feb 19, 2025 | The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Finance |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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| Department of Taxation | ** Support | |
| State of Hawaiʻi | *** Support | Mar 27, 2025 |
STAND. COM. REP. NO. 1670
Honolulu, Hawaii
RE: H.B. No. 1145
H.D. 1
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred H.B. No. 1145, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO CONFORMITY TO THE INTERNAL REVENUE CODE,"
begs leave to report as follows:
The purpose and intent of this measure is to conform Hawaii's income and estate and generation-skipping transfer tax laws to the Internal Revenue Code.
Your Committee received testimony in support of this measure from the Department of Taxation.
Your Committee received comments on this measure from the Tax Foundation of Hawaii.
Your Committee finds that sections 235-2.5 and 236E-4, Hawaii Revised Statutes, require the Department of Taxation to submit to the Legislature in each Regular Session a bill to maintain state income and estate and generation-skipping tax conformity with the federal Internal Revenue Code.
Your Committee has amended this measure by changing the effective date from July 1, 3000, to upon approval.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1145, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1145, H.D. 1, S.D. 1, and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
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________________________________ DONOVAN M. DELA CRUZ, Chair |
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STAND. COM. REP. NO. 998
Honolulu, Hawaii
, 2025
RE: H.B. No. 1145
H.D. 1
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madame:
Your Committee on Finance, to which was referred H.B. No. 1145 entitled:
"A BILL FOR AN ACT RELATING TO CONFORMITY TO THE INTERNAL REVENUE CODE,"
begs leave to report as follows:
Your Committee finds that this annual conformity measure is submitted by the Department of Taxation to ensure state income tax and state estate and generation-skipping transfer tax laws conform to the federal Internal Revenue Code as it exists on December 31 of the preceding calendar year. This measure updates state tax laws with changes made to the federal Internal Revenue Code during the past year that are appropriate for Hawaii law.
Your Committee has amended this measure by:
(1) Conforming to sections 1, 2, and 3 of the Federal Disaster Tax Relief Act of 2023 relating to disaster tax relief; and
(2) Changing the effective date to July 1, 3000, to encourage further discussion.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1145, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1145, H.D. 1, and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ KYLE T. YAMASHITA, Chair |
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Date
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Testimony PDF
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| Mar 27, 2025 | HB1145_HD1_TESTIMONY_WAM_03-28-25_.PDF |
| Feb 19, 2025 | HB1145_TESTIMONY_FIN_02-19-25_.PDF |
Discussed in Hearing
31SEC
Senate Standing Committee on Education
31SEC
Senate Standing Committee on Government Operations
31SEC
Senate Standing Committee on Ways and Means
33SEC
House Floor
1MIN
House Standing Committee on Finance
Bill Author
Bill Co-Author(s):