Hawaii HB1147 amends the Earned Income Tax Credit to align with federal changes and limits carryforward periods.

Hawaii HB1147 modifies the Earned Income Tax Credit to ensure it matches federal provisions and restricts the carryforward periods for credits. The bill specifies that qualifying individual taxpayers can claim a refundable credit, which is 40% of the federal earned income tax credit. It also limits the use of excess credits against future tax liabilities and restricts the carryforward of nonrefundable credits. The changes apply to taxable years beginning after December 31, 2024.

Hawaii HB1147 amends the Earned Income Tax Credit to align with federal changes and limits carryforward periods.

Hawaii HB1147 modifies the Earned Income Tax Credit to ensure it matches federal provisions and restricts the carryforward periods for credits. The bill specifies that qualifying individual taxpayers can claim a refundable credit, which is 40% of the federal earned income tax credit. It also limits the use of excess credits against future tax liabilities and restricts the carryforward of nonrefundable credits. The changes apply to taxable years beginning after December 31, 2024.