HB 1729 Hawaii House · 2026 Regular Session

RELATING TO TAXATION.

HB 1729 would remove the state income tax deduction for mortgage interest paid on second homes. This directly affects homeowners who own vacation properties, rental properties, or additional residences beyond their primary home. The bill changes state tax law so that interest on loans for these second properties no longer reduces taxable income. It does not apply to primary residences or federal tax rules.

Issues: ✓ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2026

Committee Review

Floor Vote

Governor

Introduced Jan 20, 2026 Last action Feb 19, 2026

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What changed between versions

HB1729 → HB1729_HD1 · 3 edits

MINOR

This bill disallows the state income tax mortgage interest deduction for second homes to help address housing affordability. The primary change is a modification to the effective date, which was updated to take effect on July 1, 3000, while retaining the rule that it applies to taxable years beginning after December 31, 2025. Several administrative details, including author names and document metadata, were also updated.

Scope change

The bill's substantive scope regarding the tax disallowance remains unchanged, but the timeline for when the law becomes effective was significantly altered to a future date of July 1, 3000.

TIMELINE

The effective date of the Act was changed from 'upon approval' to 'July 1, 3000', delaying the implementation of the tax change by several decades.

TECHNICAL

Administrative metadata including author names, document revision numbers, and formatting codes were updated to reflect the House of Representatives version.

Minor text formatting changes were made to the title and section headers to align with standard legislative markup styles.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 19, 2026

Committee

Reported from HSG (Stand. Com. Rep. No. 559-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN.

lower

Feb 18, 2026

Lower · Passed

The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 9 Ayes: Representative(s) Evslin, Miyake, Grandinetti, Kila, Kitagawa, La Chica; Ayes with reservations: Representative(s) Cochran, Muraoka, Pierick; Noes: none; and Excused: none.

lower

Jan 26, 2026

Committee

Referred to HSG, FIN, referral sheet 1

lower

Jan 21, 2026

Introduced

Introduced and Pass First Reading.

lower

Jan 20, 2026

Introduced

Prefiled.

lower

15 primary · 0 co-sponsors