Bill > SB325

This bill implements a constitutional requirement to distribute excess general fund revenues by providing a tax credit to Hawaii residents, making deposits to the emergency and budget reserve fund, and contributing to the other post-employment benefits trust fund. Specifically, the bill allows resident individual taxpayers who file a 2025 income tax return to claim a general income tax credit that will be multiplied by the number of their qualified exemptions. The credit is available to individuals not claimed as dependents by another taxpayer, with some restrictions for individuals who have been incarcerated for the full taxable year. Taxpayers can receive a refund if the tax credit exceeds their income tax liability, and claims must be filed within twelve months of the taxable year. Additionally, the bill appropriates an unspecified amount of general revenues to be deposited into the emergency and budget reserve fund and the other post-employment benefits trust fund for the 2025-2026 fiscal year. These actions are based on Article VII, Section 6 of the Hawaii State Constitution, which requires the legislature to dispose of excess general fund revenues when certain fiscal conditions are met. 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=2026