Bill > HB574

This bill establishes a $3,000 state 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 before the end of the taxable year. Eligible individuals must have either served at least 20 years in the National Guard, have a 100% service-connected disability rating, or be eligible for a pension or retirement pay from their National Guard service. The credit can only be claimed against state income tax liability and must be filed within 12 months of the end of the taxable year. Taxpayers who exclude military pension compensation from taxation are not eligible for the credit. The legislature justifies this bill by recognizing the significant contributions and sacrifices of National Guard members, who have been crucial in responding to local emergencies and supporting community needs. The tax credit is intended to provide financial support and incentive for these retired service members to remain in Hawaii. The bill will apply to taxable years beginning after December 31, 2025.

Military Affairs and Security

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=574&year=2026