Allows the state low-income housing tax credit to offset transient accommodations tax liability.

This bill modifies the Hawaii low-income housing tax credit to allow it to offset transient accommodations tax liability. The credit, which is intended to increase the construction of low-income housing, can now be used against transient accommodations taxes imposed on hotels and similar entities. This change aims to increase the pool of investors for low-income housing projects by expanding the potential pool of investors. The bill applies to taxable years beginning after December 31, 2025.

Allows the state low-income housing tax credit to offset transient accommodations tax liability.

This bill modifies the Hawaii low-income housing tax credit to allow it to offset transient accommodations tax liability. The credit, which is intended to increase the construction of low-income housing, can now be used against transient accommodations taxes imposed on hotels and similar entities. This change aims to increase the pool of investors for low-income housing projects by expanding the potential pool of investors. The bill applies to taxable years beginning after December 31, 2025.