Bill > SB567

This bill establishes a new income tax credit for Hawaii residents who incur medical travel expenses not covered by insurance, recognizing the unique geographical challenges of the state that often require residents to travel to other islands or outside Hawaii for specialized medical care. The tax credit is available to individual taxpayers who are not claimed as dependents by another taxpayer and who have paid for travel expenses primarily for obtaining medical care for themselves or their dependents. The bill allows taxpayers with an adjusted gross income below a specified threshold to claim a percentage of their medical travel expenses as a tax credit, which can be applied against their state income tax liability. If the credit exceeds the taxpayer's tax due, the excess can be refunded, with a minimum refund amount of $1. The credit covers various travel-related expenses such as airfare, lodging, transportation, and meals, and is designed to help reduce financial barriers to healthcare access, particularly for vulnerable populations like seniors, low-income residents, and those with chronic conditions. To claim the credit, taxpayers must file the appropriate forms with the director of taxation by the end of the twelfth month following the taxable year, and the credit will apply to taxable years beginning after December 31, 2024.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=567&year=2025