SB 1465 Hawaii Senate · 2025 Regular Session

RELATING TO PASS-THROUGH ENTITY TAXATION.

Summary

For taxable years beginning after 12/31/2024, 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. Effective July 1, 3000. (HD1)

Issues: ✓ Budget & Taxes

Bill status passed both 4 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Mar 2025

Senate Passage

Feb 2025

House Passage

Apr 2025

Governor

Introduced Jan 21, 2025 Last action Apr 15, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

SB1465_HD1 → SB1465_SD1 · 3 edits

MINOR

This bill amends Hawaii's pass-through entity taxation law by clarifying how qualified members can claim tax credits for taxes paid by their pass-through entities. The key change is extending the effective date of the law from July 1, 2050 (which appears to be a placeholder or error in the original) to July 1, 2050, while maintaining that it applies to taxable years beginning after December 31, 2024. The substantive policy remains largely unchanged, focusing on requiring members to include their share of entity taxes in their taxable income when claiming credits.

Scope change

No substantive scope change; the bill maintains the same eligibility criteria and tax credit provisions for pass-through entity members.

TIMELINE

Effective date changed from July 1, 3000 to July 1, 2050, though the application date for taxable years remains after December 31, 2024

TECHNICAL

Formatting and markup changes from House version to Senate version, including removal of page headers and addition of metadata fields

Text formatting adjustments including removal of underscores and special markup characters used in House version

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 10, 2025

Amended

Senate disagrees with House amendments.

upper

Apr 10, 2025

Introduced

Received from House (Hse. Com. No. 694).

upper

Apr 8, 2025

Lower · Passed

Passed Third Reading with none voting aye with reservations; Representative(s) Garcia, Muraoka, Shimizu voting no (3) and Representative(s) Cochran excused (1). Transmitted to Senate.

lower

Mar 27, 2025

Lower · Passed

The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 13 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Keohokapu-Lee Loy, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Reyes Oda; Ayes with reservations: none; 0 Noes: none; and 3 Excused: Representative(s) Hussey, Alcos, Ward.

lower

Feb 28, 2025

Committee

Referred to FIN, referral sheet 17

lower

Feb 18, 2025

Introduced

Received from Senate (Sen. Com. No. 4) in amended form (SD 1).

lower

Feb 18, 2025

Upper · Passed

Passed Third Reading, as amended (SD 1). Ayes, 22; Aye(s) with reservations: none . Noes, 0 (none). Excused, 3 (Senator(s) DeCoite, Gabbard, San Buenaventura). Transmitted to House.

upper

Feb 12, 2025

Upper · Passed

The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

Feb 7, 2025

Upper · Passed

The committee(s) on WAM has scheduled a public hearing on 02-12-25 10:00AM; Conference Room 211 & Videoconference.

upper

Jan 27, 2025

Committee

Referred to WAM.

upper

Jan 23, 2025

Introduced

Introduced and passed First Reading.

upper

Jan 21, 2025

Introduced

Pending Introduction.

upper

1 primary · 0 co-sponsors