HB694

Establishes a refundable state child tax credit for Hawaii taxpayers with dependents under age 18.

This bill creates a refundable state child tax credit for Hawaii taxpayers with dependents under age 18. The credit amount varies based on the taxpayer's adjusted gross income, ranging from $650 to $0. The credit can be claimed against the taxpayer's net income tax liability, with any excess refunded. The bill also mandates that the director of taxation prepare necessary forms, alert eligible taxpayers, and submit an annual report to the governor and legislature. The credit is applicable to taxable years beginning after December 31, 2025.