Bill > SB1466

This bill modifies Hawaii's Earned Income Tax Credit (EITC) in several key ways. For part-year residents and nonresidents, the bill clarifies that the tax credit will be calculated by multiplying the standard credit amount (40% of the federal EITC) by the ratio of Hawaii adjusted gross income to federal adjusted gross income. The bill expands the definition of "qualifying individual taxpayer" to explicitly include both residents and nonresidents who file a federal income tax return claiming the EITC and use the same filing status and dependents on their Hawaii tax return. Additionally, the bill eliminates the unlimited carryforward of nonrefundable credits for tax years after 2021, specifically stating that nonrefundable credits claimed for the tax year beginning after December 31, 2021, cannot be used as a credit for tax years beginning after December 31, 2025. These changes aim to provide clarity and set specific limitations on how and when taxpayers can claim the Earned Income Tax Credit in Hawaii, with the new provisions applying to taxable years beginning after December 31, 2024.