Bill > HB2510

This bill establishes an income tax credit for employers in Hawaii who provide paid family and medical leave to their employees, beginning with taxable years after December 31, 2025. The credit will be equal to 35% of the wages paid to a qualified employee while on leave, with a maximum credit of $4,000 per employee per year, and a limit of 12 weeks of leave for which the credit can be claimed within a 12-month period. "Family and medical leave" is defined as time off for an employee's serious health condition, the birth or adoption of a child, or caring for a family member with a serious health condition, and it does not include other types of paid time off like sick or annual leave. A "qualified employee" is one who has worked for the employer for at least 12 consecutive months, and a "qualified taxpayer" is an employer who offers at least two weeks of paid family and medical leave to full-time employees (or a proportional amount for part-time employees), uses the smallest payroll increment for leave, and has a policy that prohibits interfering with or retaliating against employees for exercising their leave rights. A "serious health condition" involves inpatient care or continuing treatment by a healthcare provider. If the credit exceeds an employer's tax liability, the unused portion can be carried forward to future years. The Director of Taxation will provide necessary forms and may adopt rules to implement this credit.

Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=2510&year=2026