HB 2174: Cost of Living; Income Tax Credit; Child and Dependent Tax Credit; Food/Excise Tax Credit

A BILL FOR AN ACT

relating to taxation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that in 2023, Hawaii's legislature approved a measure that doubled the size of the state Earned Income Tax Credit as well as increased the amount of savings for the Food Excise Tax Credit and the Child and Dependent Care Tax Credit.  These increases have given Hawaii families the opportunity to claim nearly $42 million through the Food/Excise Tax credit; however, a 2021 analysis revealed that more than $15 million credits went unclaimed.  Unfortunately, these increases in tax credit amounts are set to expire in 2027.  As the cost of living in the state continues to rise, it is imperative that we continue to provide opportunities to keep our local families home.  

     The purpose of this Act is to remove the sunset date of Act 163 (2023).

     SECTION 2.  Act 163, Session Laws of Hawaii 2023, is amended by amending section 5 to read as follows:

     "SECTION 5.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2022 [; provided that on December 31, 2027, this Act shall be repealed and sections 235-55.6(c), 235-55.75(a), and 235-55.85(b), Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day prior to the effective date of this Act]."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.

     SECTION 4.  This Act shall take effect upon its approval.

Report Title:

Cost of Living; Income Tax Credit; Child and Dependent Tax Credit; Food/Excise Tax Credit

Description:

Repeals the sunset date of Act 163, Session Laws of Hawaii 2023.

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