HOUSE OF REPRESENTATIVES	H.B. NO.	1214
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII

A BILL FOR AN ACT

relating to taxation.

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

SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235- Landlord resident tenant tax credit. (a) There shall be allowed to each taxpayer subject to the tax imposed under this chapter, a landlord resident tenant tax credit that 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.

(b) In the case of a partnership, S corporation, estate, or trust, the tax credit allowable is for dwelling units leased by the entity for the taxable year. The units upon which the tax credit is computed shall be determined at the entity level. Distribution and share of credit shall be determined by rule.

(c) The landlord resident tenant tax credit shall be equal to $1,000 per dwelling unit leased by a qualified taxpayer to a qualified tenant.

(d) The director of taxation:

(1) Shall prepare any forms that may be necessary to claim a tax credit under this section;

(2) May require the taxpayer to furnish reasonable information to ascertain the validity of the claim for the tax credit made under this section; and

(3) May adopt rules under chapter 91 necessary to effectuate the purposes of this section.

(e) If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of the credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted. All claims for the tax credit under this section, including amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

(f) As used in this section:

"Dwelling unit" has the same meaning as defined in section 521-8.

"Landlord" has the same meaning as defined in section 521‑8.

"Qualified taxpayer" means a landlord who leases a dwelling unit to a qualified tenant.

"Qualified tenant" means a tenant who is verified as a resident of the State, as defined is section 235-1.

"Tenant" has the same meaning as defined in section 521-8."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2024.

INTRODUCED BY:

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Report Title:

Income Tax; Landlord Resident Tenant Tax Credit

Description:

Establishes a landlord resident tenant tax credit.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.