Eliminates the home mortgage interest deduction for second homes under Hawai'i income tax law.

This bill amends Hawai'i income tax law to eliminate the home mortgage interest deduction for second homes. It modifies the Internal Revenue Code provisions applicable to Hawai'i income tax, specifically excluding certain sections related to high-yield discount obligations and mortgage interest deductions. The Department of Budget and Finance, in consultation with the Department of Taxation, must submit a report on the administration of this Act to the legislature before the regular sessions of 2026 through 2030. The changes will apply to taxable years beginning after December 31, 2024.

Eliminates the home mortgage interest deduction for second homes under Hawai'i income tax law.

This bill amends Hawai'i income tax law to eliminate the home mortgage interest deduction for second homes. It modifies the Internal Revenue Code provisions applicable to Hawai'i income tax, specifically excluding certain sections related to high-yield discount obligations and mortgage interest deductions. The Department of Budget and Finance, in consultation with the Department of Taxation, must submit a report on the administration of this Act to the legislature before the regular sessions of 2026 through 2030. The changes will apply to taxable years beginning after December 31, 2024.