Relating to Pass-through Entity Taxation.

For taxable years beginning after 12/31/2023, adds a definition for "qualified member" and repeals the definitions for "direct member" and "indirect member" as used in the State's passthrough entity taxation election law. Amends the passthrough entity level tax rate to be the sum of all qualified member's distributive shares and guaranteed payments of Hawaiʻi taxable income, as calculated under chapter 235, HRS, multiplied by 9%. For pass-through entities electing to pay Hawaiʻi income taxes at the entity level, allows certain qualified members entitled to a tax credit to use the credit against the member's net income tax liability in subsequent years until exhausted. (CD1)