Bill > HB694

This bill establishes a refundable state child tax credit for Hawaii that provides graduated tax credits for families with children under 18, based on their adjusted gross income. The credit ranges from $650 per dependent for families earning under $40,000 to $0 for families earning $115,000 or more, with incremental reductions in credit amount as income increases. To be eligible, taxpayers must file a federal income tax return claiming the child tax credit and file a Hawaii state tax return with the same filing status and dependents. The credit is fully refundable, meaning taxpayers can receive the full credit amount even if it exceeds their tax liability, with a minimum refund of $1. The bill includes provisions for claiming the credit, such as filing within 12 months after the tax year's close, and requires the director of taxation to prepare necessary forms, potentially require proof of claims, and submit an annual public report detailing credit usage. The tax credit will apply to taxable years beginning after December 31, 2025, and is designed to address the disproportionate tax burden on low-income families in Hawaii by providing financial support to working families with children.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=694&year=2026