Bill > HB2214

This bill establishes a new refundable diaper tax credit for eligible taxpayers in Hawaii, aiming to alleviate the financial burden of purchasing diapers for low- and middle-income families with young children, especially given Hawaii's high cost of living. A refundable tax credit means that if the credit amount exceeds the income tax owed, the excess will be paid back to the taxpayer, even if they have no tax liability. To qualify, a taxpayer must file as head of household with a federal adjusted gross income (AGI) below $90,000, or file jointly with a federal AGI below $120,000, have at least one qualifying child under five years old residing in the household, and have spent at least $250 on diaper expenses during the taxable year. Diaper expenses are defined to include disposable diapers, washable diapers, and diaper covers. The credit is set at $50 per qualifying child, and claims must be filed by the end of the twelfth month following the close of the taxable year. The director of taxation will create necessary forms and can adopt rules to implement this credit, which will apply to taxable years beginning after December 31, 2025, with the overall act taking effect on July 1, 3000.

Budget and Finance, Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=2214&year=2026