HB 1146 Hawaii House · 2025 Regular Session

RELATING TO PASS-THROUGH ENTITY TAXATION.

Summary

Requires all qualified members claiming a credit for pass-through entity taxation to adjust their income to include the qualified member's share of taxes paid by an electing pass-through entity for taxable years beginning after December 31, 2024. (SD1)

Issues: ✓ Budget & Taxes

Bill status signed all 5 stages cleared

Introduction

Jan 2025

Committee Review

Apr 2025

House Passage

Apr 2025

Senate Passage

Apr 2025

Signed into Law

May 2025

Introduced Jan 21, 2025 Signed May 15, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

HB1146_HD1 → HB1146_SD1 · 2 edits

MINOR

This bill amends Hawaii's pass-through entity taxation law to clarify how members of pass-through entities (like S corporations and partnerships) must adjust their taxable income when claiming tax credits. The changes ensure that members include their share of taxes paid by the entity in their taxable income, preventing double-dipping of tax benefits. The effective date remains unchanged, applying to taxable years beginning after December 31, 2024.

Scope change

No substantive change to scope or applicability; the bill maintains the same effective date and target entities (qualified members of electing pass-through entities).

REQUIREMENT

Revised Section 1(e) to clarify that qualified members must add their share of taxes paid by the pass-through entity to their taxable income when claiming tax credits, ensuring proper tax liability calculation.

TECHNICAL

Converted bill from House Draft 1 (HD1) to Senate Draft 1 (SD1) format, including metadata and header information updates without substantive policy changes.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 24, 2025

Lower · Passed

Passed Final Reading as amended in SD 1 with Representative(s) Reyes Oda voting aye with reservations; Representative(s) Garcia, Kong, Matsumoto, Muraoka, Pierick, Shimizu voting no (6) and Representative(s) Alcos, Cochran excused (2).

lower

Apr 24, 2025

Introduced

House agrees to Senate amendment(s).

lower

Apr 10, 2025

Amended

House disagrees with Senate amendment (s).

lower

Apr 8, 2025

Introduced

Returned from Senate (Sen. Com. No. 735) in amended form (SD 1).

lower

Apr 8, 2025

Upper · Passed

Passed Third Reading, as amended (SD 1). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House.

upper

Apr 1, 2025

Upper · Passed

The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 11 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) DeCoite, Wakai.

upper

Mar 25, 2025

Upper · Passed

The committee(s) on WAM has scheduled a public hearing on 03-28-25 10:00AM; Conference Room 211 & Videoconference.

upper

Mar 6, 2025

Committee

Referred to WAM.

upper

Mar 6, 2025

Introduced

Received from House (Hse. Com. No. 334).

upper

Mar 4, 2025

Lower · Passed

Passed Third Reading with none voting aye with reservations; Representative(s) Perruso voting no (1) and Representative(s) Kapela, Pierick, Ward excused (3). Transmitted to Senate.

lower

Feb 19, 2025

Lower · Passed

The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 12 Ayes: Representative(s) Yamashita, Takenouchi, Holt, Hussey, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Reyes Oda; Ayes with reservations: none; Noes: none; and 4 Excused: Representative(s) Grandinetti, Keohokapu-Lee Loy, Alcos, Ward.

lower

Jan 23, 2025

Committee

Referred to FIN, referral sheet 3

lower

Jan 23, 2025

Introduced

Introduced and Pass First Reading.

lower

Jan 21, 2025

Introduced

Pending introduction.

lower

1 primary · 0 co-sponsors