SB 2675 Hawaii Senate · 2026 Regular Session

RELATING TO THE LOW-INCOME HOUSING TAX CREDIT.

Summary

Clarifies that a partner or member of a partnership or limited liability company that has been allocated a low-income housing tax credit issued after July 1, 2026, may either further allocate the credit or transfer, sell, or assign all or a portion of the credit to any taxpayer. Extends the sunset date of Act 129, SLH 2016, relating to the low-income housing tax credit, until 12/31/2032. Effective 7/1/2050. (SD1)

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Feb 2026

Senate Passage

Feb 2026

House Passage

Governor

Introduced Jan 23, 2026 Last action Feb 19, 2026

Maddy AI version diff · 1 comparison

What changed between versions

SB2675 → SB2675_SD1 · 3 edits

MINOR

This bill version updates the legislative metadata to reflect the Senate's first reading (SD1) and adjusts the effective date of the law from July 1, 2026, to July 1, 2050. It also clarifies that the ability for partners in limited liability companies to transfer tax credits applies only to credits issued after July 1, 2026, rather than retroactively.

Scope change

The bill's applicability has been extended significantly; the new effective date of July 1, 2050, means the low-income housing tax credit program will remain in effect for decades longer than originally proposed.

TIMELINE

The effective date of the act was changed from July 1, 2026, to July 1, 2050, delaying when the new rules take effect.

ELIGIBILITY

The rule allowing partners in partnerships or LLCs to transfer tax credits now only applies to credits issued after July 1, 2026, instead of applying to all credits.

REQUIREMENT

The notification requirement for transferring tax credits was updated to specify that the notice must be submitted in a manner prescribed by the department of taxation.

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. 2399) 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 23, 2026

Introduced

Introduced.

upper

3 primary · 0 co-sponsors