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HB179
HOUSE OF REPRESENTATIVES
H.B. NO.
179
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
relating
to income tax
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
����
SECTION 1.
�
Section 235-55.7, Hawaii Revised Statutes, is
amended to read as follows:
����
"
�235-55.7
�
Income tax credit for
low-income household renters.
�
(a)
�
As used in this section:
���
[
(1)
]
"Adjusted
gross income" is defined by section 235-1.
���
[
(2)
]
"Qualified
exemption" includes those exemptions permitted under this chapter;
provided that a person for whom exemption is claimed has physically resided in
the State for more than nine months during the taxable year; [
and
]
provided
further
that multiple exemption shall not be granted because of
deficiencies in vision, hearing, or other disability.
���
[
(3)
]
"Rent"
means the amount paid in cash in any taxable year for the occupancy of a
dwelling place [
which
]
that
is used by a resident taxpayer or the
resident taxpayer's immediate family as the principal residence in this
State.
�
Rent is limited to the amount
paid for the occupancy of the dwelling place only, and is exclusive of charges
for utilities, parking stalls, storage of goods, yard services, furniture,
furnishings, and the like.
�
Rent shall
not include any rental claimed as a deduction from gross income or adjusted
gross income for income tax purposes, any ground rental paid for use of land
only, and any rent allowance or subsidies received.
����
(b)
�
Each resident taxpayer who occupies and pays rent for real property
within the State as the resident taxpayer's residence or the residence of the
resident taxpayer's immediate family [
which
]
that
is not
partially or wholly exempted from real property tax, who is not eligible to be
claimed as a dependent for federal or state income taxes by another, and who files
an individual net income tax return for a taxable year, may claim a tax credit
under this section against the resident taxpayer's Hawaii state individual net
income tax.
����
(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
]
based on the
taxpayer's adjusted gross income, in accordance with the table below,
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.
����
(1)
�
Taxpayer filing
a single return or a married individual filing separately:
����
Adjusted gross income
Credit
per exemption
����
Under $20,000
$300
����
$20,000 under $30,000
$250
����
$30,000 under $50,000
$200
����
$50,000 and over
$ 0.
����
(2)
�
Taxpayer filing
as a head of household:
����
Adjusted gross income
Credit
per exemption
����
Under $30,000
$300
����
$30,000 under $45,000
$250
����
$45,000 under $70,000
$200
����
$70,000 and over
$ 0.
����
(3)
�
Taxpayer filing
a joint return or as a surviving spouse:
����
Adjusted gross income
Credit
per exemption
����
Under $40,000
$300
����
$40,000 under $60,000
$250
����
$60,000 under $100,000
$200
����
$100,000 and over
$ 0.
����
(d)
�
If a rental unit is occupied by two or more
individuals, and more than one individual is able to qualify as a claimant, the
claim for credit shall be based upon a pro rata share of the rent paid.
����
(e)
�
The tax credits shall be deductible from the taxpayer's individual net
income tax for the tax year in which the credits are properly claimed; provided
that [
a husband and wife
]
married individuals
filing separate
returns for a taxable year for which a joint return could have been made by
them shall claim only the tax credits to which they would have been entitled
had a joint return been filed.
�
In the
event the allowed tax credits exceed the amount of the income tax payments due
from the taxpayer, the excess of credits over payments due shall be refunded to
the taxpayer; provided that allowed tax credits properly claimed by an
individual who has no income tax liability shall be paid to the individual; [
and
]
provided further that no refunds or payments on account of the tax credits
allowed by this section shall be made for amounts less than $1.
����
(f)
�
The director of taxation shall prepare and prescribe the appropriate
form or forms to be used herein, may require proof of the claim for tax
credits, and may adopt rules pursuant to chapter 91.
����
(g)
�
All of the provisions relating to assessments and refunds under this
chapter and under section 231-23(c)(1) shall apply to the tax credits
hereunder.
����
(h)
�
Claims for tax credits under this section,
including any amended claims thereof, shall be filed on or before the end of
the twelfth month following the taxable year for which the credit may be
claimed."
����
SECTION
2
.
�
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
]
forty-five
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
3
.
�
Section
235-55.85, Hawaii Revised Statutes, is amended by amending subsection (b) to
read as follows:
����
"
(b)
�
Each individual taxpayer may claim a
refundable food/excise tax credit, multiplied by the number of qualified
exemptions to which the taxpayer is entitled in accordance with the table below;
provided that spouses filing separate tax returns for a taxable year for which a
joint return could have been filed by them shall claim only the tax credit to
which they would have been entitled had a joint return been filed.
����
Adjusted
gross income
��������
Credit per exemption
����
for
taxpayers filing
����
a
single
return
����
Under
$15,000
�������������������
[
$220
]
$320
����
$15,000
under $20,000
������������
[
$200
]
$300
����
$20,000
under $25,000
������������
[
$170
]
$270
����
$25,000
under $30,000
������������
[
$140
]
$240
����
$30,000
under [
$40,000
]
$50,000
���
[
$110
]
$220
����
[
$40,000
]
$50,000
and over
�����������
$
�
0.
����
Adjusted
gross income
��������
Credit per exemption
����
for
heads of household,
����
surviving
spouses,
����
spouses
filing
����
separate
returns, and
����
married
couples filing
����
joint
returns
����
Under
$15,000
��������������������
[
$22
0
]
$320
����
$15,000
under $20,000
������������
[
$200
]
$300
����
$20,000
under $25,000
������������
[
$170
]
$270
����
$25,000
under $30,000
������������
[
$140
]
$240
����
$30,000
under $40,000
������������
[
$110
]
$210
����
$40,000
under $50,000
������������
[
$ 90
]
$190
����
$50,000
under [
$60,000
]
$70,000
���
[
$ 70
]
$170
����
[
$60,000
]
$70,000
and over
���������
$
�
0."
����
SECTION 4.
�
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,
section 1 of
this Act shall be repealed and [
sections
]
section
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
]
it
read on the day prior to the effective date of this Act."
����
SECTION 5.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.
����
SECTION
6
.
�
This Act, upon
its approval, shall apply to taxable years beginning after December 31, 2024.
INTRODUCED BY:
_____________________________
Report Title:
Low-income Household Renters; Earned Income Tax Credit;
Refundable Food/excise Tax Credit; Adjustments
Description:
Makes permanent the amendments made by Act 163, SLH 2023,
to the state earned income tax credit and refundable food/excise tax
credit.
�
Amends the income thresholds and
credit amounts for the low-income household renters tax credit and refundable
food/excise tax credit.
�
Amends the state
earned income tax credit.
�
Applies to taxable
years beginning after 12/31/2024.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.