HOUSE OF REPRESENTATIVES	H.B. NO.	2866
TWENTY-FIFTH LEGISLATURE, 2010		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO TAXATION.

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

     SECTION 1.  Section 236D-2, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Internal Revenue Code" means the federal Internal Revenue Code of 1986, as amended and renumbered, except that Sections 2011 and 2604 of the Internal Revenue Code shall mean those Sections as they existed on December 31, 2009."

     SECTION 2.  Section 236D-2, Hawaii Revised Statutes, is amended by amending the definitions of "federal credit", "generation-skipping transfer", "gross estate", "personal representative", "section 2011", "taxable estate", and "transfer" to read:

     ""Federal credit" means:

     (1)  For a transfer, the maximum amount of the credit for state death taxes allowed by section 2011 for the decedent's adjusted taxable estate; and

     (2)  For a generation-skipping transfer, the maximum amount of the credit for state taxes allowed by section 2604 of the [federal] Internal Revenue Code [of 1986, as amended or renumbered.] as it existed on December 31, 2000.

     "Generation-skipping transfer" means a generation-skipping transfer as defined and used in [section] Section 2611 of the [federal] Internal Revenue Code [of 1986, as amended or renumbered].

     "Gross estate" means gross estate as defined and used in [sections] Sections 2031 to [2045] 2046 of the [federal] Internal Revenue Code [of 1986, as amended or renumbered].

     "Personal representative" means the personal representative of a decedent appointed under chapter 560, and includes an executor (as defined under section 2203 of the [federal] Internal Revenue Code [of 1986, as amended or renumbered]), administrator, successor personal representative, special administrator, and persons who perform substantially the same function under the law governing their status.

     "Section 2011" means [section] Section 2011 of the [federal] Internal Revenue Code [of 1986, as amended or renumbered.] as it existed on December 31, 2000.

     "Taxable estate" means taxable estate as defined in [sections] Sections 2051 to 2056 of the [federal] Internal Revenue Code [of 1986, as amended or renumbered.] and Section 2058 of the Internal Revenue Code, with respect to estates of decedents dying and generation-skipping transfers, after December 31, 2004.

     "Transfer" means transfer as defined and used in [section] Section 2001 of the [federal] Internal Revenue Code [of 1986, as amended or renumbered]."

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

     SECTION 4.  This Act shall take effect upon its approval; provided that this Act shall apply to property or interests that pass from any individual who dies after December 31, 2009, and to generation-skipping transfers after December 31, 2009.

Report Title:

Taxation; Income Tax Rates

Description:

Retains the State's ability to "pick-up" the state death tax credit as it existed in the Internal Revenue Code on December 31, 2009.  (HB2866 HD1)

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