HB1147

Modifies Hawaii's earned income tax credit to align with federal rules and limits carryforward credits.

This bill amends Hawaii's earned income tax credit to match the federal earned income tax credit, allowing qualifying individual taxpayers to claim a refundable credit equal to forty percent of the federal credit. It specifies that the credit can be applied against the taxpayer's net income tax liability in subsequent years until exhausted, but no credit can be used for taxable years beginning after December 31, 2024. The bill also limits the use of nonrefundable credits for taxable years beginning after December 31, 2021, and prohibits their use after December 31, 2025.