Bill > SB1053

This bill establishes a refundable state child tax credit in Hawaii for families with children under 18, designed to address tax inequity and support working families. The credit is structured on a sliding scale based on adjusted gross income, ranging from $650 per dependent for households earning under $40,000 to $0 for households earning $115,000 or more. 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 to qualify. The credit is fully refundable, meaning that if the credit exceeds the taxpayer's income tax liability, the excess will be refunded, with a minimum refund of $1. The bill requires the director of taxation to prepare necessary forms, potentially require proof of claim, 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 provide financial relief to low and moderate-income families with children, addressing the state's historically high tax burden on lower-income households.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1053&year=2025