REQUESTING THE DEPARTMENT OF TAXATION TO CONDUCT A COMPREHENSIVE ANALYSIS OF CORPORATE INCOME REPORTING STRUCTURES, INCLUDING THE TREATMENT OF FOREIGN SUBSIDIARY INCOME, TO INFORM LONG-TERM FISCAL PLANNING.

This bill requests the Hawaii Department of Taxation to conduct a comprehensive analysis of how corporations report their income, with a specific focus on foreign subsidiary structures. The analysis will examine different reporting methods, estimate tax revenue from companies with foreign subsidiaries, and compare Hawaii's current system with alternative approaches used by other states. The Department of Taxation must submit its findings to the Legislature by the end of 2026, providing data to help inform future fiscal planning without making any immediate policy changes.