Hawaii HB1261 proposes a tax credit for landlords charging below-market rent and a tax on those charging above-market rent.

Hawaii HB1261 aims to address housing affordability by incentivizing landlords to offer below-market rental rates and discouraging excessive rents. It establishes a tax credit for landlords who charge below-market rent, defined as 80% or less of the median market rent. This credit is equal to 10% of the annual gross proceeds or income from leasing such units. Conversely, the bill imposes an additional privilege tax on landlords who lease units at or above 120% of the median market rent.

Hawaii HB1261 proposes a tax credit for landlords charging below-market rent and a tax on those charging above-market rent.

Hawaii HB1261 aims to address housing affordability by incentivizing landlords to offer below-market rental rates and discouraging excessive rents. It establishes a tax credit for landlords who charge below-market rent, defined as 80% or less of the median market rent. This credit is equal to 10% of the annual gross proceeds or income from leasing such units. Conversely, the bill imposes an additional privilege tax on landlords who lease units at or above 120% of the median market rent.