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HRS §235-129

Tax credits for S corporation shareholders

This section explains how S corporation shareholders get tax credits in Hawaii. It treats certain taxes paid by the S corporation to other states as if the shareholder paid them. It also gives shareholders a credit for their share of the S corporation's Hawaii tax credit.

borrowers

The statute, as written — Tax credits

(a) For purposes of section 235‑55, each resident shareholder shall be considered to have paid a tax imposed on the shareholder in an amount equal to the shareholder's pro rata share of any net income tax paid by the S corporation to a state that does not measure the income of S corporation shareholders by the income of the S corporation. For purposes of the preceding sentence, the term "net income tax" means any tax imposed on or measured by a corporation's net income. (b) Each shareholder of an S corporation shall be allowed a credit against the tax imposed by section 235-51 in an amount equal to the shareholder's pro rata share of the tax credit earned by the S corporation in this State.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

Sections this one refers to

§235-51 Hawaii income tax rates for individuals

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.