RELATING TO THE EARNED INCOME TAX CREDIT.

Taxes

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: LAMOSAO, AMATO, BELATTI, CHUN, EVSLIN, GARRETT, GRANDINETTI, KAPELA, KILA, KITAGAWA, MIYAKE, MORIKAWA, OLDS, PERRUSO, POEPOE, QUINLAN, TAKENOUCHI, TODD
Last action: 2025-12-08
Official status: Carried over to 2026 Regular Session.
Effective date: Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Increasing the State Earned Income Tax Credit

This bill increases the state earned income tax credit to fifty percent of the federal earned income tax credit, starting in 2025.

What This Bill Does

Increases the state's earned income tax credit to 50% of what the federal government offers.
Makes this increase permanent for all future years.
Applies to people who file taxes after December 31, 2024.

Who It Names or Affects

People who earn low to moderate income and qualify for the earned income tax credit.

Terms To Know

Earned Income Tax Credit: A government program that gives money back to people with low or moderate incomes through their taxes.

Limits and Unknowns

The bill does not specify how much more money individuals will receive from this change.
It is unclear if there are any limits on who can claim the credit beyond what federal rules already state.

Bill History

2025-12-08 D
Carried over to 2026 Regular Session.
2025-01-21 H
Referred to ECD, FIN, referral sheet 1
2025-01-16 H
Introduced and Pass First Reading.
2025-01-14 H
Prefiled.

Official Summary Text

RELATING TO THE EARNED INCOME TAX CREDIT.
Income Tax; Earned Income Tax Credit
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.

Current Bill Text

Read the full stored bill text

HB182

HOUSE OF REPRESENTATIVES

H.B. NO.

182

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

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.

INTRODUCED BY:

_____________________________

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.

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