RELATING TO CONFORMITY TO THE INTERNAL REVENUE CODE.

SB 3149 aligns Hawaii's state income tax and estate/generation-skipping transfer tax laws with the federal Internal Revenue Code of 1986, as updated through December 31, 2025. This bill directly affects Hawaii residents and estates subject to state income and transfer taxes by updating state rules to match federal changes. Its key mechanism is synchronizing state tax definitions, deductions, and rates with the federal code as amended by that date. The legislation aims to reduce discrepancies between state and federal tax treatments for taxpayers. It is currently in early stages, having been introduced on January 26, 2026.