Bill > SB567

This bill establishes a new state income tax credit for Hawaii residents to help offset medical travel expenses not covered by insurance. Specifically, the bill allows taxpayers with an adjusted gross income below a certain threshold to claim a tax credit for travel expenses related to obtaining medical care for themselves or their dependents. The credit would cover expenses such as airfare, lodging, transportation, and meals that are primarily essential for medical treatment. To be eligible, taxpayers must file an individual net income tax return and cannot be claimed as a dependent by another taxpayer. The tax credit can be applied against the taxpayer's state income tax liability, and if the credit exceeds the tax owed, the excess can be refunded to the taxpayer, with a minimum refund amount of $1. Taxpayers must file claims for the credit within 12 months following the taxable year, and the director of taxation will be responsible for creating the necessary forms and guidelines. The bill defines "medical care" and "dependent" using existing federal tax code definitions and is set to apply to taxable years beginning after December 31, 2024. The legislation aims to address Hawaii's unique geographical challenges that can make accessing specialized medical care difficult and costly for residents.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=567&year=2026