Bill > SB325

This bill implements a constitutional requirement in Hawaii to dispose of excess general fund revenues by providing tax relief and making strategic financial deposits. Specifically, the bill creates a tax credit for resident individual taxpayers for the 2025 tax year, with the credit amount being multiplied by the number of qualified exemptions. To be eligible, taxpayers must be residents of Hawaii for at least nine months and not claimed as dependents by another taxpayer. The bill excludes individuals who have been confined in prison or correctional facilities for the full taxable year from receiving the credit. Additionally, the bill mandates deposits into two funds: the emergency and budget reserve fund and the other post-employment benefits trust fund, both in accordance with Article VII, Section 6 of the Hawaii State Constitution. These deposits are designed to provide supplemental funding during economic downturns or to pre-pay state employee pension and post-employment benefit liabilities. If a taxpayer's tax credit exceeds their tax liability, the excess will be refunded. The bill is set to take effect on July 1, 3000, with the tax credit provisions applying to taxable years beginning after December 31, 2024.

Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=325&year=2025