Bill > HB183

This bill modifies Hawaii's Earned Income Tax Credit (EITC) by allowing qualifying individual taxpayers to claim an additional 10% of the federal EITC if they have a dependent under the age of eighteen. The existing law already provides a refundable tax credit equal to 40% of the federal EITC, and this bill adds the new supplemental credit for parents or guardians with younger dependents. The legislation specifically notes that for married couples filing separate tax returns, the credit will be calculated as if they had filed jointly. The bill is set to take effect for taxable years beginning after December 31, 2024, which means taxpayers will first be able to claim this enhanced credit when they file their 2025 tax returns. This change aims to provide additional financial support to families with younger children by increasing the state-level tax credit for low to moderate-income working individuals.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=183&year=2026