HB 2444: Low-Income Household Renters; Income Tax Credit; Income Eligibility Increase; Credit per Exemption

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 renters in Hawaii face some of the highest housing and cost-of-living burdens in the nation.  Unlike homeowners, renters do not directly benefit from property tax relief programs and are disproportionately impacted by regressive taxes, including the general excise tax.  The legislature further finds that targeted, refundable renter tax credits are an effective way to provide immediate relief to lower-income households, support housing stability, and improve economic security, particularly for families with dependents.

     The purpose of this Act is to increase the income eligibility limit and credit amount per exemption claimed for the income tax credit for low-income household renters.

     SECTION 2.  Section 235-55.7, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  Each taxpayer with an adjusted gross income of less than [$30,000] $40,000 who has paid more than $1,000 in rent during the taxable year for which the credit is claimed may claim a tax credit of [$50] $187 multiplied by the number of qualified exemptions to which the taxpayer is entitled; provided that each taxpayer sixty-five years of age or over may claim double the tax credit; [and] provided further that a resident individual who has no income or no income taxable under this chapter may also claim the tax credit as set forth in this section."

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  Statutory material to be repealed is bracketed and stricken.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

     SECTION 4.  This Act shall take effect on July 1, 3000, and shall apply to taxable years beginning after December 31, 2025.

Report Title:

Low-Income Household Renters; Income Tax Credit; Income Eligibility Increase; Credit per Exemption

Description:

Increases the income eligibility limit and credit amount per exemption claimed for the income tax credit for low-income household renters.  Effective 7/1/3000.  (HD3)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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 renters in Hawaii face some of the highest housing and cost-of-living burdens in the nation.  Unlike homeowners, renters do not directly benefit from property tax relief programs and are disproportionately impacted by regressive taxes, including the general excise tax.  The legislature further finds that targeted, refundable renter tax credits are an effective way to provide immediate relief to lower-income households, support housing stability, and improve economic security, particularly for families with dependents.

     The purpose of this Act is to increase the income tax credit for low-income household renters from $50 to $170 per exemption claimed by the taxpayer.

     SECTION 2.  Section 235-55.7, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  Each taxpayer with an adjusted gross income of less than $30,000 who has paid more than $1,000 in rent during the taxable year for which the credit is claimed may claim a tax credit of [$50] $170 multiplied by the number of qualified exemptions to which the taxpayer is entitled; provided that each taxpayer sixty-five years of age or over may claim double the tax credit; [and] provided further that a resident individual who has no income or no income taxable under this chapter may also claim the tax credit as set forth in this section."

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

     SECTION 4.  This Act shall take effect on July 1, 3000, and shall apply to taxable years beginning after December 31, 2025.

Report Title:

Low-Income Household Renters; Income Tax Credit; Increase

Description:

Increases the tax credit for low-income household renters from $50 to $170 per exemption claimed by the taxpayer.  Effective 7/1/3000.  (HD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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 renters in Hawaii face some of the highest housing and cost-of-living burdens in the nation.  Unlike homeowners, renters do not directly benefit from property tax relief programs and are disproportionately impacted by regressive taxes, including the general excise tax.  The legislature further finds that targeted, refundable renter tax credits are an effective way to provide immediate relief to lower-income households, support housing stability, and improve economic security, particularly for families with dependents.

     The purpose of this Act is to increase the income tax credit for low-income household renters from $50 to $100 per exemption claimed by the taxpayer.

     SECTION 2.  Section 235-55.7, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  Each taxpayer with an adjusted gross income of less than $30,000 who has paid more than $1,000 in rent during the taxable year for which the credit is claimed may claim a tax credit of [$50] $100 multiplied by the number of qualified exemptions to which the taxpayer is entitled; provided that each taxpayer sixty-five years of age or over may claim double the tax credit; [and] provided further that a resident individual who has no income or no income taxable under this chapter may also claim the tax credit as set forth in this section."

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

     SECTION 4.  This Act shall take effect on July 1, 3000, and shall apply to taxable years beginning after December 31, 2025.

Report Title:

Low-Income Household Renters; Income Tax Credit; Increase

Description:

Increases the tax credit for low-income household renters from $50 to $100 per exemption claimed by the taxpayer.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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 renters in Hawaii face some of the highest housing and cost-of-living burdens in the nation.  Unlike homeowners, renters do not directly benefit from property tax relief programs and are disproportionately impacted by regressive taxes, including the general excise tax.  The legislature further finds that targeted, refundable renter tax credits are an effective way to provide immediate relief to lower-income households, support housing stability, and improve economic security, particularly for families with dependents.

     The purpose of this Act is to increase the income tax credit for low-income household renters from $50 to $100 per exemption claimed by the taxpayer.

     SECTION 2.  Section 235-55.7, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  Each taxpayer with an adjusted gross income of less than $30,000 who has paid more than $1,000 in rent during the taxable year for which the credit is claimed may claim a tax credit of [$50] $100 multiplied by the number of qualified exemptions to which the taxpayer is entitled; provided that each taxpayer sixty-five years of age or over may claim double the tax credit; [and] provided further that a resident individual who has no income or no income taxable under this chapter may also claim the tax credit as set forth in this section."

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

     SECTION 4.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2025.

Report Title:

Low-Income Household Renters; Income Tax Credit; Increase

Description:

Increases the tax credit for low-income household renters from $50 to $100 per exemption claimed by the taxpayer.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  1089-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 2444

      H.D. 3

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Finance, to which was referred H.B. No. 2444, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this measure is to increase the income tax credit for low‑income household renters from $50 to $170 per exemption claimed by the taxpayer.

     Your Committee received testimony in support of this measure from Hawaii Children's Action Network Speaks!; Catholic Charities Hawaiʻi; and one individual.  Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

     Your Committee has amended this measure by:

     (1)  Increasing the adjusted gross income eligibility limit for the tax credit from $30,000 to $40,000;

     (2)  Increasing the income tax credit to $187 per exemption claimed by the tax credit; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2444, H.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2444, H.D. 3.

Respectfully submitted on behalf of the members of the Committee on Finance,

STAND. COM. REP. NO.  620-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 2444

      H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Economic Development & Technology, to which was referred H.B. No. 2444, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this measure is to increase the income tax credit for low‑income household renters from $50 to $100 per exemption claimed by the taxpayer.

     Your Committee received testimony in support of this measure from Catholic Charities Hawaiʻi; Hawaiʻi Children's Action Network Speaks!; and two individuals.  Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

     Your Committee finds that renters in Hawaii face some of the highest housing and cost‑of‑living burdens in the country and often lack access to property tax relief programs provided to homeowners.  Your Committee further finds that refundable renter tax credits are an effective way to provide financial relief to lower-income households.  However, your Committee recognizes that the income tax credit for low-income household renters has not kept up with inflation and was last updated in 1981.  This measure therefore updates this tax credit to better reflect current housing costs and provide critical relief to severely cost-burdened renters in the State.

     Your Committee has amended this measure by:

     (1)  Increasing the income tax credit for low-income household renters to $170 per exemption; and

     (2)  Making a technical, nonsubstantive amendment for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Economic Development & Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2444, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 2444, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Technology,

STAND. COM. REP. NO.  142-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 2444

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Housing, to which was referred H.B. No. 2444 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this measure is to increase the income tax credit for low‑income household renters from $50 to $100 per exemption claimed by the taxpayer.

     Your Committee received testimony in support of this measure from Catholic Charities Hawaiʻi; Hawaiʻi Children's Action Network Speaks!; and two individuals.  Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

     Your Committee finds that renters in Hawaii experience some of the highest housing and cost‑of‑living burdens in the country, yet they do not directly benefit from financial relief programs that assist homeowners.  These households are further strained by regressive taxes, including the general excise tax, which disproportionately impacts lower‑income families already struggling to meet basic expenses.  This measure provides targeted financial relief that can help stabilize household budgets and improve economic security for low‑income renters.

     Your Committee has amended this measure by changing the effective date to July 1, 3000, to encourage further discussion.

     As affirmed by the record of votes of the members of your Committee on Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2444, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2444, H.D. 1, and be referred to your Committee on Economic Development & Technology.

Respectfully submitted on behalf of the members of the Committee on Housing,