Bill > HB179

This bill makes several significant changes to income tax credits for low-income residents in Hawaii. It increases and modifies the low-income household renters tax credit by creating a tiered system based on filing status and adjusted gross income, with credits ranging from $0 to $300 per exemption depending on income level and filing type. The bill also increases the state earned income tax credit from 40% to 45% of the federal earned income tax credit. Additionally, it enhances the refundable food/excise tax credit by increasing credit amounts across different income brackets, with the highest credit rising from $220 to $320 for lower-income taxpayers and expanding the income threshold for eligibility. The changes are designed to provide more substantial tax relief for low and moderate-income households, with the new provisions applying to taxable years beginning after December 31, 2024. The bill also makes permanent the amendments previously made by Act 163 from 2023, ensuring continued support for these tax credits beyond their original sunset date.

Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=179&year=2026