Informing the Legislature that on May 15, 2025, the Governor signed the following bill into law: HB1146 HD1 SD1 (ACT 058).

This bill amends Hawaii's tax code to provide a credit for members of pass-through entities (like partnerships or S-corporations) that elect to pay tax at the entity level. It allows members to claim a credit equal to their share of the tax paid by the entity, with any unused credit carried forward to future tax years. The bill also requires members to add back the entity's tax to their personal taxable income, preventing them from deducting it twice. These changes apply to taxable years beginning after December 31, 2024.