SB 704: RELATING TO THE EARNED INCOME TAX CREDIT.

A BILL FOR AN ACT

RElating to the earned income tax credit.

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

     SECTION 1.  Section 235-55.75, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Each qualifying individual taxpayer may claim a refundable earned income tax credit.  The tax credit, for the appropriate taxable year, shall be [forty] fifty per cent of the federal earned income tax credit allowed and properly claimed under section 32 of the Internal Revenue Code and reported as such on the individual's federal income tax return."

     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years beginning after December 31, 2022; provided that on December 31, 2027, sections 1 and 3 of this Act shall be repealed and sections 235-55.6(c)[, 235-55.75(a),] and 235-55.85(b), Hawaii Revised Statutes, shall be reenacted in the form in which they read on the day prior to the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  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2024.

Report Title:

Income Tax; Earned Income Tax Credit

Description:

Permanently increases the state earned income tax credit to fifty per cent of the federal earned income tax credit.  Applies to taxable years beginning after 12/31/2024.

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