SB 2451 Hawaii Senate · 2026 Regular Session

RELATING TO TAXATION.

SB 2451 eliminates the home mortgage interest deduction for second homes under Hawaii's income tax law. This change directly affects Hawaii taxpayers who own second homes and currently claim this tax break on their mortgage interest. The bill removes this specific deduction from the state tax code, meaning owners of secondary properties will no longer receive a tax benefit for mortgage interest paid on those homes. It also requires the state to submit regular reports to the Legislature about the bill's implementation and effects.

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Feb 2026

Senate Passage

Feb 2026

House Passage

Governor

Introduced Jan 22, 2026 Last action Feb 19, 2026

Maddy AI version diff · 1 comparison

What changed between versions

SB2451 → SB2451_SD1 · 3 edits

MINOR

This bill amends the removal of the home mortgage interest deduction for second homes in Hawaii by adding a specific exception. The change clarifies that the deduction ban does not apply if the second home is not used as a primary residence by the owner or a long-term tenant, effectively narrowing the scope of the tax elimination. Additionally, the effective date for the law's application was significantly delayed from the original 2026 timeframe to July 1, 2050.

Scope change

The bill's scope was narrowed by introducing an exception for second homes that are not occupied by the owner or a long-term tenant as a primary residence.

ELIGIBILITY

Added a specific exception stating that the home mortgage interest deduction ban does not apply if the second home is not utilized as a primary residence by the owner or a long-term tenant.

TIMELINE

Changed the effective date of the Act from the original 2026 timeframe to July 1, 2050, while maintaining that it applies to taxable years beginning after December 31, 2025.

REQUIREMENT

Expanded the reporting requirements for the Department of Budget and Finance to include specific metrics such as the number of second homes not used as primary residences and their geographic distribution.

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

Feb 19, 2026

Upper · Passed

Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.

upper

Feb 19, 2026

Committee

Reported from HOU (Stand. Com. Rep. No. 2401) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Feb 10, 2026

Upper · Passed

The committee(s) on HOU recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in HOU were as follows: 5 Aye(s): Senator(s) Chang, Hashimoto, Elefante, Rhoads, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

Feb 2, 2026

Upper · Passed

The committee(s) on HOU has scheduled a public hearing on 02-05-26 1:01PM; Conference Room 225 & Videoconference.

upper

Jan 28, 2026

Committee

Referred to HOU, WAM.

upper

Jan 22, 2026

Introduced

Introduced.

upper

2 primary · 1 co-sponsor