Bill > SB3125

This bill makes several changes to Hawaii's income tax laws, primarily by repealing future adjustments to the standard deduction and income tax brackets, which means these amounts will not automatically increase with inflation in the future. It also modifies the child and dependent care tax credit by increasing the percentage of employment-related expenses that can be claimed, and it introduces a disallowance period for this credit if a taxpayer is found to have committed fraud or had their claim disallowed by a final decision. For the purpose of this credit, "adjusted gross income" will be defined according to the federal Internal Revenue Code. Additionally, the bill extends the sunset date, which is the date when certain tax provisions expire, for amendments made in 2023 to the child and dependent care tax credit, the earned income tax credit, and the food/excise tax credit, pushing their expiration from 2027 to 2032.

Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=3125&year=2026