HB 916 Hawaii House · 2025 Regular Session

RELATING TO THE LOW-INCOME HOUSING TAX CREDIT.

Summary

Allows tax credits claimed under the State Low-Income Housing Tax Credit Program to be used to offset taxes imposed by the state transient accommodations tax law. Specifies that tax credit amounts applied to state transient accommodations taxes be limited to state transient accommodations taxes imposed in the same county in which the qualified low-income building is located. Makes permanent Act 129, SLH 2016. Effective 7/1/3000. (HD1)

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 21, 2025 Last action Feb 11, 2025

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What changed between versions

HB916 → HB916_HD1 · 4 edits

MODERATE

This bill expands how Hawaii's low-income housing tax credits can be used by allowing them to offset transient accommodations taxes (hotel taxes) in addition to income taxes. Previously, these credits could only be applied to income tax, which limited their value to investors. The change makes the existing low-income housing tax credit program permanent and clarifies that credits can be used against transient accommodations taxes in the same county where the affordable housing project is located.

Scope change

The bill changes the scope of the low-income housing tax credit from being applicable only to income tax liability to also being applicable to transient accommodations tax liability in the same county as the qualified low-income building.

ELIGIBILITY

Expanded the types of taxes that can be offset by the low-income housing tax credit to include transient accommodations taxes in addition to income taxes.

TIMELINE

Made the low-income housing tax credit program permanent by extending Act 129, Session Laws of Hawaii 2016, which was previously set to expire on December 31, 2027.

Changed the effective date of the Act from July 1, 2021 to July 1, 3000, making the provisions permanent.

REQUIREMENT

Added a new section to Chapter 237D clarifying that the tax credit can be applied to transient accommodations taxes assessed in the same county where the qualified low-income building is located.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 4, 2025

Committee

Reported from HSG (Stand. Com. Rep. No. 139) as amended in HD 1, recommending passage on Second Reading and referral to TOU/ECD.

lower

Jan 29, 2025

Lower · Passed

The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 8 Ayes: Representative(s) Evslin, Miyake, Grandinetti, Kila, Kitagawa, La Chica, Pierick; Ayes with reservations: Representative(s) Muraoka; Noes: none; and 1 Excused: Representative(s) Cochran.

lower

Jan 23, 2025

Committee

Referred to HSG, TOU/ECD, 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