HOUSE OF REPRESENTATIVES	H.B. NO.	2356
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO INCOME tax.

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

     SECTION 1.  Section 235-2.4, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

     "(e)  Section 165 (with respect to losses) of the Internal Revenue Code shall be operative for purposes of this chapter, except that [Section 165(d) (with respect to wagering losses),] the amount prescribed by Section 165(h)(1) (relating to the limitation per casualty) of the Internal Revenue Code shall be a $100 limitation per casualty, and Sections 165(h)(3)(A) and 165(h)(3)(B) (both of which relate to special rules for personal casualty gains and losses in federally declared disasters) of the Internal Revenue Code shall not be operative for purposes of this chapter.  Section 165 as operative for this chapter shall also apply to losses sustained from the sale of stocks or other interests issued through the exercise of the stock options or warrants granted by a qualified high technology business as defined in section 235-7.3."

     SECTION 2.  Act 165, Session Laws of Hawaii 2009, is repealed.

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.

     SECTION 4.  This Act shall take effect upon its approval and shall apply retroactively to taxable years beginning after December 31, 2008.

INTRODUCED BY:

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Report Title:

Income Tax; Gambling Losses

Description:

Restores the limited state income tax deduction for gambling losses retroactively for taxable years beginning after 12/31/08.

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