Bill > HB232

This bill establishes a two-year pilot program to reduce income tax liability for residents of the 96792 zip code area on Oahu, which has a significant Native Hawaiian and Pacific Islander population experiencing high poverty rates. The program aims to provide financial relief by offering graduated tax reductions based on household adjusted gross income: 50% reduction for lower-income households, 30% reduction for middle-income households, 10% reduction for upper-middle-income households, and no reduction for higher-income households. To be eligible, participants must have continuously resided in the specified zip code since January 1, 2023, and file resident state income tax returns for 2023 and 2024. Participants will need to submit proof of residency such as tax filings, utility bills, leases, or property deeds, which the Department of Taxation will verify. The department is required to prepare necessary forms, potentially adopt implementing rules, and submit a comprehensive report to the legislature before the 2028 regular session, detailing the program's financial impact and potential recommendations. The pilot program will be in effect for taxable years beginning after December 31, 2024, and will be repealed on December 31, 2026.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=232&year=2026