Bill > HB574

This bill establishes a $3,000 income tax credit for retired Hawaii National Guard service members who meet specific eligibility criteria. To qualify, a taxpayer must file a Hawaii individual income tax return, have an adjusted gross income below $77,950, and have separated from the Hawaii National Guard, while also meeting one of three additional requirements: serving at least 20 years in the National Guard, having a 100% service-connected disability rating, or being eligible for a pension or retirement pay for National Guard service. The tax credit can only be claimed against state income tax liability and must be filed within twelve months of the end of the taxable year. Importantly, taxpayers who exclude military pension compensation from taxation are not eligible for this credit. The bill is rooted in recognizing the significant contributions of Hawaii National Guard members, who have historically supported local communities during natural disasters and emergencies, and aims to provide financial recognition for their service. The tax credit will become applicable for taxable years beginning after December 31, 2025, and is designed to help retain experienced military retirees in the state by offering a meaningful financial benefit.

Military Affairs and Security

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=574&year=2025