WeVote
Log In

Bill

Bill

HCR 189

REQUESTING THE DEPARTMENT OF TAXATION TO CONDUCT A COMPREHENSIVE ANALYSIS OF CORPORATE INCOME REPORTING STRUCTURES, INCLUDING THE TREATMENT OF FOREIGN SUBSIDIARY INCOME, TO INFORM LONG-TERM FISCAL PLANNING.

2026 Regular Session Introduced by Terez Amato and 5 co-sponsors

Hawaii requests a tax department study of corporate income reporting, including foreign subsidiary treatment, to guide future fiscal policy decisions.

Received from House (Hse. Com. No. 589).
#comprehensiveanalysis #corporateincomereporting #departmentoftaxation
0
WeVote Research Nonpartisan
Bill Summary · HCR 189

Legislative bill overview

HCR 189 requests Hawaii's Department of Taxation to conduct a comprehensive study of how corporations report income within the state, with particular focus on how foreign subsidiary income is treated. The results would be used to inform the state's long-term fiscal and tax policy planning.

Why is this important

Corporate income reporting structures significantly affect state tax revenue—Hawaii's primary funding source for public services. Foreign subsidiary income treatment is particularly relevant as multinational corporations operating in Hawaii may shift profits overseas to reduce state tax liability, potentially understating their actual economic activity in the state and reducing available tax revenue.

Potential points of contention

  • Revenue impact uncertainty: The study may reveal substantial revenue losses, which could pressure lawmakers to raise corporate taxes or close loopholes, creating opposition from business interests
  • Implementation complexity: Analyzing foreign subsidiary structures requires expertise in international tax law; recommendations may be difficult or costly to implement without federal coordination
  • Competitive concerns: Some argue stricter corporate income tracking could make Hawaii less attractive to businesses compared to other states, potentially affecting economic development

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.