Bill > SB2746

This bill establishes a new income tax credit for medically related travel expenses in Hawaii, aiming to alleviate financial burdens for residents who must travel for necessary medical care not available locally. The credit is for "qualified expenses," which include airfare, lodging, ground transportation, medically required incidentals (like special dietary needs during travel), and parking fees, incurred by a "patient" (a taxpayer or their dependent needing out-of-state or inter-island medical care certified as necessary by a physician) and one accompanying "caregiver." The amount of the credit varies based on household income, with those earning up to 300% of the area median income receiving 100% of qualified expenses (up to $2,500 for single filers, $3,750 for heads of household, and $5,000 for joint filers), those earning between 300% and 500% receiving 50% of expenses (with the same maximums), and those above 500% receiving no credit. To claim the credit, taxpayers must submit a physician's certificate of medical necessity and a statement of qualified expenses with supporting documentation to the Department of Business, Economic Development, and Tourism (DBEDT) by March 31st of the following year; DBEDT will then certify the credit amount, which the taxpayer files with their tax return. The credit can be carried forward to future tax years if it exceeds the tax liability and will be repealed on January 1, 2031, applying to taxable years beginning after December 31, 2025.

Business and Industry, Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2746&year=2026