Bill > HB182

This bill permanently increases the state earned income tax credit (EITC) from 40% to 50% of the federal earned income tax credit for qualifying individual taxpayers. The federal EITC is a tax benefit designed to provide financial support to low to moderate-income working individuals and families, helping to offset payroll taxes and supplement income. The bill amends Section 235-55.75 of the Hawaii Revised Statutes to implement this change, which will apply to taxable years beginning after December 31, 2024. Additionally, the bill modifies a previous act (Act 163 from the 2023 Session Laws of Hawaii) to reflect this change, ensuring that sections 1 and 3 of that act will be repealed on December 31, 2027, with certain statutory provisions returning to their previous form. This modification effectively makes the 50% EITC a permanent feature of Hawaii's tax code, providing ongoing tax relief to eligible workers in the state.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=182&year=2026