Informing the Legislature that on May 29, 2025, the Governor signed the following bill into law: SB1464 HD1 CD1 (ACT 123).

SB1464 (Act 123) aligns Hawaii's income and estate tax laws with the federal Internal Revenue Code (IRC) as of December 31, 2024, for tax years beginning after that date. It updates Hawaii's tax definitions to reference the federal IRC for calculating gross income, adjusted gross income, and taxable income, while excluding specific federal payments like 2020-2021 recovery rebates from taxable income. The bill also incorporates federal tax provisions from pandemic relief laws, ensuring consistent treatment of items such as EIDL advances and restaurant grants in Hawaii tax calculations. This affects all Hawaii taxpayers subject to income and estate taxes for tax years starting in 2025 or later.