If enacted, HB 1819 would amend Chapter 235 of the Hawaii Revised Statutes, effectively introducing new tax advantages for families. The introduction of this tax credit signifies a step towards addressing the financial challenges faced by families, particularly those with lower incomes. By providing a nonrefundable credit, the bill potentially helps alleviate some burdens of state income taxes, which could positively affect family budgets and enable greater spending within local economies. This credit is designed to benefit qualifying parents, including those filing separately, though specific rules govern how custodial and noncustodial parents can claim the credit.
House Bill 1819, introduced in the Hawaii State Legislature, establishes a nonrefundable child tax credit that allows taxpayers to claim a credit against their state income tax. The proposed credit is tiered based on the taxpayer's adjusted gross income and is available only to residents of Hawaii. Taxpayers filing as single or married individuals may claim a credit of up to $500 for each qualifying child, with the amount decreasing as their income exceeds certain thresholds. The bill aims to provide financial relief to families with children, encouraging economic stability in the state.
Discussions surrounding HB 1819 may focus on its implications for state revenue and potential effects on budget allocations. While proponents argue that the tax credit will support families, critics may raise concerns about the long-term fiscal impacts on state budgets and public services. The tiered structure of the credit, which layers different benefits based on income levels, could also be a point of debate, emphasizing the need for clear guidelines to ensure that intended beneficiaries receive the full benefits without unintended inequities arising from the rules governing child custody and tax filing statuses.