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SB 1465 Hawaii Senate · 2026 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 & TaxesSupports Budget & TaxesCloses tax loophole for pass-through entities by requiring income adjustment to include entity taxes paid, promoting fiscal responsibility.85% confidence
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 2, 2026
Maddy AI version diff · 2 comparisons

What changed between versions

SB1465_HD1 → SB1465_SD1 · 2 edits
MINOR
The bill was revised from a House Draft (HD1) to a Senate Draft (SD1), updating administrative metadata and correcting a critical future effective date from the year 3000 to 2050. This change ensures the tax provisions for pass-through entities and S corporations will apply to taxable years beginning after December 31, 2024, as intended, rather than remaining in effect for centuries.
Scope change
The substantive scope regarding taxation of pass-through entities and S corporations remains unchanged; the revision primarily corrects the timeline for when the law takes effect.
TIMELINE

The effective date of the Act was corrected from July 1, 3000, to July 1, 2050, ensuring the law applies to the correct future tax years.

TECHNICAL

Administrative metadata, including bill identifiers, author names, and revision numbers, were updated to reflect the Senate Draft 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
25
Key actions
6
Committee
5
Amendments
1
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 14, 2025
Upper · Passed
Report adopted; Passed Second Reading, as amended (SD 1).
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

Sponsors

Role
Legislator
Party
State
District
P
Photo of Ron Kouchi
Ron Kouchi
DDemocratic
HI
8