Hawaii Legislation Would Clarify that Certain IRC Provisions Don’t Apply to State LIHTC
A bill introduced in the Hawaii Legislature would specify that certain provisions of the Internal Revenue Code concerning deductions, at-risk rules and passive activity loss do not apply to claims for the state low-income housing tax credit (LIHTC). H.B. 956 also covers taxpayers who were granted an award under Section 1602 of the American Recovery and Reinvestment Act. For buildings that receive a LIHTC allocation after Dec. 31, 2019, the bill would exclude certain provisions. The state LIHTC would remain equal to 50 percent of the federal LIHTC.