PLACE: Princess Ruth Keelikolani Building
Room 310
830 Punchbowl Street
Honolulu, Hawaii 96813

RE: Proposed rules relating to distribution of income tax credits for partnerships, S corporations, estates and trusts

Pursuant to chapter 91, Hawaii Revised Statutes, the Director of Taxation of the State of Hawaii will hold a public hearing at the above-referenced time and place to allow the public to comment on the proposed adoption of rules relating to distribution of income tax credits for partnerships, S corporations, estates and trusts.

The proposed rules amend chapter 235, Hawaii Administrative Rules (HAR), by adding a new section 18-235-3-01, HAR. The new section creates a general rule for how income tax credits may be distributed by partnerships, S corporations, estates, and trusts to their partners, shareholders, and beneficiaries when the method of distribution is not specified by statute or the statute states that distribution shall be determined by rule.

All interested parties are invited to attend and present their views orally or in writing. Written statements may be submitted to the Rules Office at the Department of Taxation before or at the public hearing.

The proposed rules are available online at tax.hawaii.gov and ltgov.hawaii.gov, or by mail at no cost to any person who requests them. A copy of the proposed rules may also be picked up between 7:45 a.m. and 4:30 p.m., Monday through Friday, from the Rules Office at the Department of Taxation, Room 219, Princess Ruth Keelikolani Building, 830 Punchbowl Street, Honolulu, Hawaii and at the District Tax Offices located at 3060 Eiwa Street, #105, Lihue, Kauai; 54 S High Street, #208, Wailuku, Maui; and 75 Aupuni Street, #101, Hilo, Hawaii.