Hawaii DoTax Issues Income, General Excise Tax Treatment of Various COVID-19 Relief Programs, Payments

The Hawaii Department of Taxation (DoTax) Oct. 5 issued a tax information release on the corporate income, individual income, and sales and use tax treatment of various COVID-19 relief programs and payments provided by the federal government. The DoTax provided: 1) the Economic Impact Payments, loan proceeds from the Paycheck Protection Program (PPP), and Economic Injury Disaster Loan Emergency Advances (EIDL) programs aren’t subject to state income tax; 2) payments under the Pandemic Unemployment Assistance (PUA) and Federal Pandemic Unemployment Compensation programs are subject to state income tax; 3) rental and mortgage assistance payments aren’t subject to state income tax ...