RELATING TO TAXATION.

HB2525

HOUSE OF REPRESENTATIVES

H.B. NO.

2525

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to taxation
.

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

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SECTION
1.
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Chapter 235, Hawaii Revised Statutes,
is amended by adding a new section to be appropriately designated and to read
as follows:

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�235-
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Police officer retention
and housing income tax credit.
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(a)
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There shall
be allowed to each qualifying taxpayer subject to the tax imposed under this
chapter, a police officer retention and housing income tax credit that shall be
applied against the taxpayer's net income tax liability, if any, imposed by
this chapter for the taxable year in which the credit is properly claimed.

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(b)
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The police officer retention and housing income tax credit shall be
equal to $10,000.

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(c)
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The director of taxation:

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(1)
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Shall
prepare any forms that may be necessary to claim a tax credit under this
section;

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(2)
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May
require the taxpayer to furnish reasonable information to ascertain the
validity of the claim for the tax credit made under this section; and

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(3)
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May
adopt rules under chapter 91 as necessary to effectuate the purposes of this
section.

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(d)
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If the tax credit claimed by the taxpayer under this section exceeds the
amount of the income tax payments due from the taxpayer, the excess of credit
over payments due shall be refunded to the taxpayer; provided that the tax
credit properly claimed by a taxpayer who has no income tax liability shall be
paid to the taxpayer; and provided further that no refunds or payments on
account of the tax credit allowed by this section shall be made for amounts
less than $1.
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All claims for the tax
credit under this section, including amended claims, shall be filed on or
before the end of the twelfth month following the close of the taxable year for
which the credit may be claimed.
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Failure
to comply with the foregoing provision shall constitute a waiver of the right
to claim the credit.

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(e)
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For the purposes of this section, "qualifying taxpayer" means
a police officer employed during the taxable year by the police department of a
county with a population greater than five hundred thousand.
"

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SECTION
2.
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New statutory material is
underscored.

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SECTION
3.
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This Act, upon its approval, shall
apply to taxable years beginning after December 31, 2025.

INTRODUCED BY:

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Report Title:

Police
Officer Retention and Housing Income Tax Credit

Description:

Establishes
a refundable income tax credit for the retention and housing of certain police
officers.

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