HB183 amends Hawaii’s earned income tax credit law to increase the state refundable EITC for qualifying taxpayers. Under current law, the credit equals 40% of the federal earned income tax credit; the bill keeps that base amount but adds an extra 10% of the federal credit for taxpayers who claim a dependent under age 18. The bill also preserves the existing rule limiting spouses who file separately to the credit they would have received on a joint return.
The measure applies to taxable years beginning after December 31, 2024, so it would affect returns filed for the 2025 tax year and later if enacted. In practical terms, it would expand tax relief for low- and moderate-income working families, especially households with minor children, by increasing the refundable credit amount they can claim on their Hawaii income tax returns.
Impact
HB183 would amend section 235-55.75 of the Hawaii Revised Statutes, which governs the state earned income tax credit, by creating an additional child-dependent enhancement to the refundable credit. The bill would directly affect individual taxpayers who qualify for the Hawaii EITC and claim a dependent under 18, increasing the amount of state tax refund or reducing tax liability for those households. It would also continue to apply the existing filing-status limitation for married taxpayers filing separately.
Sentiment
The available context suggests generally favorable treatment of the bill, with no recorded opposition in the provided transcripts or votes. The bill was introduced and referred to the House committees on Economic Development and Finance, indicating it was being considered as a tax policy measure aimed at supporting working families. The absence of recorded debate or votes in the provided materials means there is no documented committee sentiment beyond the bill’s supportive framing in the title and description.
Contention
The main policy issue is the cost and targeting of the expanded refundable credit. Supporters would likely view the additional 10% credit for taxpayers with children under 18 as a targeted benefit for low-income working families, while any concerns would center on reduced state revenue and whether the enhancement should be limited to households with minor dependents. The bill does not appear to raise major technical disputes in the text itself, and no specific objections are reflected in the provided discussion or voting history.