RELATING TO THE EARNED INCOME TAX CREDIT.

Plain English Breakdown

The exact percentage of the additional credit is mentioned in the bill text but not in the summary or digest.

Earned Income Tax Credit with Additional Dependent Credit

This bill allows qualifying individual taxpayers who claim a dependent under the age of eighteen to get an additional ten percent of their federal earned income tax credit.

What This Bill Does

• Adds a new part to Hawaii's tax law about earned income tax credits, allowing qualifying individual taxpayers to claim an additional ten percent of their federal EITC if they have a dependent under eighteen years old.
• Taxpayers who file separate returns but could have filed jointly do not qualify for the extra credit.

Who It Names or Affects

• Individual taxpayers in Hawaii
• Dependents under the age of eighteen

Terms To Know

Earned Income Tax Credit (EITC)

A tax credit for low- to moderate-income working individuals and families.

Qualifying individual taxpayer

An individual who meets the requirements set by the state to claim a tax credit.

Limits and Unknowns

• The bill does not specify how many dependents can qualify for the additional credit.
• It is unclear if there are any limits on the total amount of the additional credit that one taxpayer can receive.

Official Summary Text

RELATING TO THE EARNED INCOME TAX CREDIT.
Taxation; Earned Income Tax Credit; Additional Credit for Dependents
Authorizes each qualifying individual taxpayer to claim an additional credit if the taxpayer claims any dependent under the age of eighteen.

Current Bill Text

HB183

HOUSE OF REPRESENTATIVES

H.B. NO.

183

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:

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

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"
(a)
�
Each qualifying
individual taxpayer may claim a refundable earned income tax credit.
�
The tax credit, for the appropriate taxable
year, shall be forty 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.
�
Each qualifying taxpayer claiming a
dependent under the age of eighteen may claim an additional ten per cent of the
federal earned income tax credit; provided that spouses filing separate tax
returns for a taxable year for which a joint return could have been filed shall
claim only the tax credit to which they would have been entitled had a joint
return been filed.
"

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SECTION 2.
�
New statutory material is underscored.

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SECTION 3.
�
This Act, upon its approval, shall apply to
taxable years beginning after December 31, 2024.

INTRODUCED BY:

_____________________________

Report Title:

Taxation;
Earned Income Tax Credit; Additional Credit for Dependents

Description:

Authorizes
each qualifying individual taxpayer to claim an additional credit if the
taxpayer claims any dependent under the age of eighteen.

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