Bill > SB1053

This bill establishes a refundable child tax credit for Hawaii taxpayers with children under 18, designed to provide financial support to working families with varying levels of income. The credit ranges from $650 per dependent for households earning under $40,000 to $0 for households earning $115,000 or more, with a sliding scale of decreasing credit amounts as household income increases. To be eligible, taxpayers must file a federal income tax return claiming the child tax credit and use the same filing status and dependents on their Hawaii state tax return. The credit is fully refundable, meaning that if the credit amount exceeds the taxpayer's tax liability, they will receive the difference as a refund, with a minimum refund of $1. The bill requires the director of taxation to prepare necessary forms, potentially require proof of claims, alert eligible taxpayers, and submit an annual public report detailing the credits granted. The tax credit will apply to taxable years beginning after December 31, 2025, and aims to address historical tax inequities that have disproportionately burdened low-income families in Hawaii by providing direct financial support to families with children.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1053&year=2026