Pursuant to Act 50, Session Laws of Hawai`i 2024, the Department of Taxation is authorized to adopt temporary rules, which have the same force and effect as permanent rules. Temporary rules become effective seven days after statewide public notice is given and expire 18 months after the effective date.

The temporary rules implement Act 50, Session Laws of Hawai`i 2024, amends section 235-51.5, HRS, which allows PTE’s to elect to be taxed at the entity level and provides a credit to members whose distributive share or guaranteed payment of Hawai`i taxable income is subject to the tax. Amends the PTE tax base by imposing the tax on the sum of the distributive share and guaranteed payments of all “qualified member[s].” Amends the PTE tax rate from the highest rate of tax applicable to the individual under section 235-51, HRS, to 9 percent and allows the PTE credit to be carried forward in subsequent years until exhausted.

The temporary rules are available online at tax.hawaii.gov or ltgov.hawaii.gov.
A copy of the temporary rules may also be obtained between the hours of 7:45 a.m. through 4:30 p.m. Monday through Friday, excluding State holidays, at the Director’s Office located at the Department of Taxation, Room 221, Princess Ruth Ke`elikolani Building, 830 Punchbowl Street, Honolulu, Hawaii, and at the District Tax Offices located at 3060 Eiwa Street, Lihue, Kauai, 54 High Street, Wailuku, Maui, and 75 Aupuni Street, Hilo, Hawaii.

For more information, or to request a copy of the temporary rules, please call the Department of Taxation, Rules Office at (808) 587-1530.