Hawaii 2024 Regular Session

Hawaii Senate Bill SB1347 Compare Versions

Only one version of the bill is available at this time.

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1	1	THE SENATE S.B. NO. 1347 THIRTY-SECOND LEGISLATURE, 2023 STATE OF HAWAII A BILL FOR AN ACT RELATING TO INCOME TAX. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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3	3	THE SENATE S.B. NO. 1347
4	4	THIRTY-SECOND LEGISLATURE, 2023
5	5	STATE OF HAWAII
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7	7	THE SENATE
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9	9	S.B. NO.
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11	11	1347
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13	13	THIRTY-SECOND LEGISLATURE, 2023
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17	17	STATE OF HAWAII
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31	31	A BILL FOR AN ACT
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37	37	RELATING TO INCOME TAX.
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43	43	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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47	47	SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows: "§235- Tax credit for teacher expenses. (a) There shall be allowed to each qualifying taxpayer subject to the tax imposed by this chapter, a tax credit for qualifying expenses that shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed. (b) The amount of the tax credit shall be equal to eighty per cent of the amount expended for qualifying expenses in a taxable year; provided that the credit shall not exceed $500 per taxable year. (c) 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 the credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted. (d) No other tax credit or deduction shall be claimed under this chapter for qualifying expenses for the taxable year. (e) The director of taxation shall prepare such forms as may be necessary to claim a credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91. (f) Claims for the tax credit under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit. (g) As used in this section: "Qualifying expenses" means expenses paid or incurred by a qualifying taxpayer in connection with books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment (including related software and services) and other equipment, and supplementary materials used by the qualifying taxpayer in the classroom. "Qualifying taxpayer" means an individual employed by the department of education, a charter school, or a private school in the State as a kindergarten through twelfth‑grade teacher for at least nine hundred hours during the tax year." SECTION 2. Section 235-2.4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) Section 63 (with respect to taxable income defined) of the Internal Revenue Code shall be operative for the purposes of this chapter, subject to the following: (1) Section 63(c)(1)(B) (relating to the additional standard deduction), 63(c)(1)(C) (relating to the real property tax deduction), 63(c)(1)(D) (relating to the disaster loss deduction), 63(c)(1)(E) (relating to the motor vehicle sales tax deduction), 63(c)(4) (relating to inflation adjustments), 63(c)(7) (defining the real property tax deduction), 63(c)(8) (defining the disaster loss deduction), 63(c)(9) (defining the motor vehicle sales tax deduction), and 63(f) (relating to additional amounts for the aged or blind) of the Internal Revenue Code shall not be operative for purposes of this chapter; (2) Section 63(c)(2) (relating to the basic standard deduction) of the Internal Revenue Code shall be operative[, except that the standard deduction amounts provided therein shall instead mean: (A) $4,400 in the case of: (i) A joint return as provided by section 235-93; or (ii) A surviving spouse (as defined in section 2(a) of the Internal Revenue Code); (B) $3,212 in the case of a head of household (as defined in section 2(b) of the Internal Revenue Code); (C) $2,200 in the case of an individual who is not married and who is not a surviving spouse or head of household; or (D) $2,200 in the case of a married individual filing a separate return;]; provided that: (A) The standard deduction amounts provided therein shall instead mean: (i) $10,000 in the case of a joint return as provided by section 235-93 or a surviving spouse (as defined in section 2(a) of the Internal Revenue Code); (ii) $7,500 in the case of a head of household (as defined in section 2(b) of the Internal Revenue Code); (iii) $5,000 in the case of an individual who is not married and who is not a surviving spouse or head of household; or (iv) $5,000 in the case of a married individual filing a separate return; (B) For each taxable year beginning on or after January 1, 2024, the director shall, no later than December 15 of the preceding calendar year, recompute the standard deduction amounts by multiplying the dollar amounts for the previous tax year by the cost-of-living adjustment factor, if the cost-of-living adjustment factor is greater than zero, and rounding off the resulting product to the nearest $1. If the cost-of-living adjustment factor is less than zero in a given year, then no adjustment will occur in the following year. For purposes of this subparagraph, the cost-of-living adjustment factor is calculated by adding 1.0 to the percentage change in the Urban Hawaii Consumer Price Index for all items, as published by the United States Department of Labor, from July of the prior calendar year to July of the current calendar year. If the Urban Hawaii Consumer Price Index is discontinued, the Chained Consumer Price Index for all urban areas for all items, as published by the United States Department of Labor, shall be used to calculate the cost-of-living adjustment; (3) Section 63(c)(5) (limiting the basic standard deduction in the case of certain dependents) of the Internal Revenue Code shall be operative, except that the limitation shall be the greater of $500 or the individual's earned income; and (4) The standard deduction amount for nonresidents shall be calculated pursuant to section 235-5." SECTION 3. Section 235-51, Hawaii Revised Statutes, is amended to read as follows: "§235-51 Tax imposed on individuals; rates. (a) There is hereby imposed on the taxable income of every: (1) Taxpayer who files a joint return under section 235-93; and (2) Surviving spouse, a tax determined in accordance with the following table: [In the case of any taxable year beginning after December 31, 2017: If the taxable income is: The tax shall be: Not over $4,800 1.40% of taxable income Over $4,800 but $67.00 plus 3.20% of not over $9,600 excess over $4,800 Over $9,600 but $221.00 plus 5.50% of not over $19,200 excess over $9,600 Over $19,200 but $749.00 plus 6.40% of not over $28,800 excess over $19,200 Over $28,800 but $1,363.00 plus 6.80% of not over $38,400 excess over $28,800 Over $38,400 but $2,016.00 plus 7.20% of not over $48,000 excess over $38,400 Over $48,000 but $2,707.00 plus 7.60% of not over $72,000 excess over $48,000 Over $72,000 but $4,531.00 plus 7.90% of not over $96,000 excess over $72,000 Over $96,000 but $6,427.00 plus 8.25% of not over $300,000 excess over $96,000 Over $300,000 but $23,257.00 plus 9.00% of not over $350,000 excess over $300,000 Over $350,000 but $27,757.00 plus 10.00% of not over $400,000 excess over $350,000 Over $400,000 $32,757.00 plus 11.00% of excess over $400,000.] In the case of any taxable year beginning after December 31, 2022: If the taxable income is: The tax shall be: Not over $5,126 1.40% of taxable income Over $5,126 but $72.00 plus 3.20% of not over $10,253 excess over $5,126 Over $10,253 but $236.00 plus 5.50% of not over $20,506 excess over $10,253 Over $20,506 but $800.00 plus 6.40% of not over $30,758 excess over $20,506 Over $30,758 but $1,456.00 plus 6.80% of not over $41,011 excess over $30,758 Over $41,011 but $2,153.00 plus 7.20% of not over $51,264 excess over $41,011 Over $51,264 but $2,891.00 plus 7.60% of not over $76,896 excess over $51,264 Over $76,896 but $4,839.00 plus 7.90% of not over $102,528 excess over $76,896 Over $102,528 but $6,864.00 plus 8.25% of not over $320,400 excess over $102,528 Over $320,400 but $24,839.00 plus 9.00% of not over $373,800 excess over $320,400 Over $373,800 but $29,645.00 plus 10.00% of not over $427,200 excess over $373,800 Over $427,200 $34,985.00 plus 11.00% of excess over $427,200. (b) There is hereby imposed on the taxable income of every head of a household a tax determined in accordance with the following table: [In the case of any taxable year beginning after December 31, 2017: If the taxable income is: The tax shall be: Not over $3,600 1.40% of taxable income Over $3,600 but $50.00 plus 3.20% of not over $7,200 excess over $3,600 Over $7,200 but $166.00 plus 5.50% of not over $14,400 excess over $7,200 Over $14,400 but $562.00 plus 6.40% of not over $21,600 excess over $14,400 Over $21,600 but $1,022.00 plus 6.80% of not over $28,800 excess over $21,600 Over $28,800 but $1,512.00 plus 7.20% of not over $36,000 excess over $28,800 Over $36,000 but $2,030.00 plus 7.60% of not over $54,000 excess over $36,000 Over $54,000 but $3,398.00 plus 7.90% of not over $72,000 excess over $54,000 Over $72,000 but $4,820.00 plus 8.25% of not over $225,000 excess over $72,000 Over $225,000 but $17,443.00 plus 9.00% of not over $262,500 excess over $225,000 Over $262,500 but $20,818.00 plus 10.00% of not over $300,000 excess over $262,500 Over $300,000 $24,568.00 plus 11.00% of excess over $300,000.] In the case of any taxable year beginning after December 31, 2022: If the taxable income is: The tax shall be: Not over $3,845 1.40% of taxable income Over $3,845 but $54.00 plus 3.20% of not over $7,690 excess over $3,845 Over $7,690 but $177.00 plus 5.50% of not over $15,379 excess over $7,690 Over $15,379 but $600.00 plus 6.40% of not over $23,069 excess over $15,379 Over $23,069 but $1,092.00 plus 6.80% of not over $30,758 excess over $23,069 Over $30,758 but $1,615.00 plus 7.20% of not over $38,448 excess over $30,758 Over $38,448 but $2,168.00 plus 7.60% of not over $57,672 excess over $38,448 Over $57,672 but $3,629.00 plus 7.90% of not over $76,896 excess over $57,672 Over $76,896 but $5,148.00 plus 8.25% of not over $240,300 excess over $76,896 Over $240,300 but $18,629.00 plus 9.00% of not over $280,350 excess over $240,300 Over $280,350 but $22,234.00 plus 10.00% of not over $320,400 excess over $280,350 Over $320,400 $26,239.00 plus 11.00% of excess over $320,400. (c) There is hereby imposed on the taxable income of (1) every unmarried individual (other than a surviving spouse, or the head of a household) and (2) on the taxable income of every married individual who does not make a single return jointly with the individual's spouse under section 235-93 a tax determined in accordance with the following table: [In the case of any taxable year beginning after December 31, 2017: If the taxable income is: The tax shall be: Not over $2,400 1.40% of taxable income Over $2,400 but $34.00 plus 3.20% of not over $4,800 excess over $2,400 Over $4,800 but $110.00 plus 5.50% of not over $9,600 excess over $4,800 Over $9,600 but $374.00 plus 6.40% of not over $14,400 excess over $9,600 Over $14,400 but $682.00 plus 6.80% of not over $19,200 excess over $14,400 Over $19,200 but $1,008.00 plus 7.20% of not over $24,000 excess over $19,200 Over $24,000 but $1,354.00 plus 7.60% of not over $36,000 excess over $24,000 Over $36,000 but $2,266.00 plus 7.90% of not over $48,000 excess over $36,000 Over $48,000 but $3,214.00 plus 8.25% of not over $150,000 excess over $48,000 Over $150,000 but $11,629.00 plus 9.00% of not over $175,000 excess over $150,000 Over $175,000 but $13,879.00 plus 10.00% of not over $200,000 excess over $175,000 Over $200,000 $16,379.00 plus 11.00% of excess over $200,000.] In the case of any taxable year beginning after December 31, 2022: If the taxable income is: The tax shall be: Not over $2,563 1.40% of taxable income Over $2,563 but $36.00 plus 3.20% of not over $5,126 excess over $2,400 Over $5,126 but $118.00 plus 5.50% of not over $10,253 excess over $5,126 Over $10,253 but $400.00 plus 6.40% of not over $15,379 excess over $10,253 Over $15,379 but $728.00 plus 6.80% of not over $20,506 excess over $15,379 Over $20,506 but $1,077.00 plus 7.20% of not over $25,632 excess over $20,506 Over $25,632 but $1,446.00 plus 7.60% of not over $38,448 excess over $25,632 Over $38,448 but $2,420.00 plus 7.90% of not over $51,264 excess over $38,448 Over $51,264 but $3,432.00 plus 8.25% of not over $160,200 excess over $51,264 Over $160,200 but $12,419.00 plus 9.00% of not over $186,900 excess over $160,200 Over $186,900 but $14,822.00 plus 10.00% of not over $213,600 excess over $186,900 Over $213,600 $17,492.00 plus 11.00% of excess over $213,600. (d) The tax imposed by section 235-2.45 on estates and trusts shall be determined in accordance with the following table: In the case of any taxable year beginning after December 31, 2001: If the taxable income is: The tax shall be: Not over $2,000 1.40% of taxable income Over $2,000 but $28.00 plus 3.20% of not over $4,000 excess over $2,000 Over $4,000 but $92.00 plus 5.50% of not over $8,000 excess over $4,000 Over $8,000 but $312.00 plus 6.40% of not over $12,000 excess over $8,000 Over $12,000 but $568.00 plus 6.80% of not over $16,000 excess over $12,000 Over $16,000 but $840.00 plus 7.20% of not over $20,000 excess over $16,000 Over $20,000 but $1,128.00 plus 7.60% of not over $30,000 excess over $20,000 Over $30,000 but $1,888.00 plus 7.90% of not over $40,000 excess over $30,000 Over $40,000 $2,678.00 plus 8.25% of excess over $40,000. (e) Any taxpayer, other than a corporation, acting as a business entity in more than one state who is required by this chapter to file a return may elect to report and pay a tax of .5 per cent of the taxpayer's annual gross sales if the: (1) Taxpayer's only activities in this State consist of sales; (2) Taxpayer does not own or rent real estate or tangible personal property; and (3) Taxpayer's annual gross sales in or into this State during the tax year is not in excess of $100,000. (f) If a taxpayer has a net capital gain for any taxable year to which this subsection applies, then the tax imposed by this section shall not exceed the sum of: (1) The tax computed at the rates and in the same manner as if this subsection had not been enacted on the greater of: (A) The taxable income reduced by the amount of net capital gain, or (B) The amount of taxable income taxed at a rate below 7.25 per cent, plus (2) A tax of 7.25 per cent of the amount of taxable income in excess of the amount determined under paragraph (1). This subsection shall apply to individuals, estates, and trusts for taxable years beginning after December 31, 1986. (g) For each taxable year beginning on or after January 1, 2024, the director shall, no later than December 15 of the preceding calendar year, recompute the taxable income amounts within each of the income brackets in subsections (a), (b), and (c) by multiplying the taxable income amounts within each income bracket for the previous tax year by the cost-of-living adjustment factor, if the cost-of-living adjustment factor is greater than zero, and rounding off the resulting product to the nearest $1. If the cost-of-living adjustment factor is less than zero in a given year, then no adjustment will occur in the following year. For purposes of this subsection, the cost-of-living adjustment factor is calculated by adding 1.0 to the percentage change in the Urban Hawaii Consumer Price Index for all items, as published by the United States Department of Labor, from July of the prior calendar year to July of the current calendar year. If the Urban Hawaii Consumer Price Index is discontinued, the Chained Consumer Price Index for all urban areas for all items, as published by the United States Department of Labor, shall be used to calculate the cost-of-living adjustment. Nothing in this subsection shall be construed as permitting an adjustment to the rates of tax in subsections (a), (b), and (c)." SECTION 4. Section 235-54, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) In computing the taxable income of any individual, there shall be deducted, in lieu of the personal exemptions allowed by the Internal Revenue Code, personal exemptions computed as follows: Ascertain the number of exemptions which the individual can lawfully claim under the Internal Revenue Code, add an additional exemption for the taxpayer or the taxpayer's spouse who is sixty-five years of age or older within the taxable year, and multiply that number by [$1,144,] $2,288, for taxable years beginning after December 31, [1984.] 2022. A nonresident shall prorate the personal exemptions on account of income from sources outside the State as provided in section 235-5. In the case of an individual with respect to whom an exemption under this section is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual's taxable year begins, the personal exemption amount applicable to such individual under this subsection for such individual's taxable year shall be zero. For each taxable year beginning on or after January 1, 2024, the director shall, no later than December 15 of the preceding calendar year, recompute the personal exemption amount by multiplying the dollar amount for the previous tax year by the cost-of-living adjustment factor, if the cost-of-living adjustment factor is greater than zero, and rounding off the resulting product to the nearest $1. If the cost-of-living adjustment factor is less than zero in a given year, then no adjustment will occur in the following year. For purposes of this subsection, the cost-of-living adjustment factor is calculated by adding 1.0 to the percentage change in the Urban Hawaii Consumer Price Index for all items, as published by the United States Department of Labor, from July of the prior calendar year to July of the current calendar year. If the Urban Hawaii Consumer Price Index is discontinued, the Chained Consumer Price Index for all urban areas for all items, as published by the United States Department of Labor, shall be used to calculate the cost-of-living adjustment." SECTION 5. Section 235-55.6, Hawaii Revised Statutes, is amended as follows: (1) By amending subsection (a) to read as follows: "(a) Allowance of credit. (1) In general. For each resident taxpayer, who files an individual income tax return for a taxable year, and who is not claimed or is not otherwise eligible to be claimed as a dependent by another taxpayer for federal or Hawaii state individual income tax purposes, who maintains a household which includes as a member one or more qualifying individuals (as defined in subsection (b)(1)), there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the applicable percentage of the employment-related expenses (as defined in subsection (b)(2)) paid by the individual during the taxable year. If the tax credit claimed by a resident taxpayer exceeds the amount of income tax payment due from the resident taxpayer, the excess of the credit over payments due shall be refunded to the resident taxpayer; provided that tax credit properly claimed by a resident individual who has no income tax liability shall be paid to the resident individual; and provided further that no refunds or payment on account of the tax credit allowed by this section shall be made for amounts less than $1. (2) Applicable percentage. For purposes of paragraph (1), the taxpayer's applicable percentage shall be determined as follows: Adjusted gross income Applicable percentage [Not over $25,000 25% Over $25,000 but 24% not over $30,000 Over $30,000 but 23% not over $35,000 Over $35,000 but 22% not over $40,000 Over $40,000 but 21% not over $45,000 Over $45,000 but 20% not over $50,000 Over $50,000 15%.] Not over $150,000 50% Over $150,000 but 45% not over $165,000 Over $165,000 but 40% not over $180,000 Over $180,000 but 35% not over $195,000 Over $195,000 but 30% not over $210,000 Over $210,000 but 25% not over $225,000 Over $225,000 20%." (2) By amending subsection (c) to read as follows: "(c) Dollar limit on amount creditable. The amount of the employment-related expenses incurred during any taxable year which may be taken into account under subsection (a) shall not exceed: (1) [$2,400] $10,000 if there is one qualifying individual with respect to the taxpayer for such taxable year, or (2) [$4,800] $20,000 if there are two or more qualifying individuals with respect to the taxpayer for such taxable year. The amount determined under paragraph (1) or (2) (whichever is applicable) shall be reduced by the aggregate amount excludable from gross income under section 129 (with respect to dependent care assistance programs) of the Internal Revenue Code for the taxable year." SECTION 6. Section 235-55.7, Hawaii Revised Statutes, is amended as follows: (1) By amending subsection (a) to read as follows: "(a) As used in this section: (1) "Adjusted gross income" [is defined by section 235-1.] means adjusted gross income as defined by the Internal Revenue Code. (2) "Qualified exemption" includes those exemptions permitted under this chapter; provided that a person for whom exemption is claimed has physically resided in the State for more than nine months during the taxable year; and provided that multiple exemption shall not be granted because of deficiencies in vision, hearing, or other disability. (3) "Rent" means the amount paid in cash in any taxable year for the occupancy of a dwelling place which is used by a resident taxpayer or the resident taxpayer's immediate family as the principal residence in this State. Rent is limited to the amount paid for the occupancy of the dwelling place only, and is exclusive of charges for utilities, parking stalls, storage of goods, yard services, furniture, furnishings, and the like. Rent shall not include any rental claimed as a deduction from gross income or adjusted gross income for income tax purposes, any ground rental paid for use of land only, and any rent allowance or subsidies received." (2) By amending subsection (c) to read as follows: "(c) Each taxpayer [with an adjusted gross income of less than $30,000] who has paid more than [$1,000] $2,500 in rent during the taxable year for which the credit is claimed may claim a tax credit [of $50] multiplied by the number of qualified exemptions to which the taxpayer is entitled[;] in accordance with the table below; provided each taxpayer sixty-five years of age or over may claim double the tax credit; and provided that a resident individual who has no income or no income taxable under this chapter may also claim the tax credit as set forth in this section. Adjusted gross income Credit per exemption for taxpayers filing a single return and married individuals filing separate returns Under $20,000 $350 $20,000 under $30,000 $250 $30,000 under $40,000 $150 $40,000 and over $ 0 Adjusted gross income Credit per exemption for married couples filing joint returns and surviving spouses Under $40,000 $350 $40,000 under $60,000 $250 $60,000 under $80,000 $150 $80,000 and over $ 0 Adjusted gross income Credit per exemption for heads of household Under $30,000 $350 $30,000 under $45,000 $250 $45,000 under $60,000 $150 $60,000 and over $ 0." SECTION 7. Section 235-55.75, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) Each qualifying individual taxpayer may claim a refundable earned income tax credit. The tax credit, for the appropriate taxable year, shall be [twenty] thirty per cent of the federal earned income tax credit allowed and properly claimed under section 32 of the Internal Revenue Code and reported as such on the individual's federal income tax return." SECTION 8. Section 235-55.85, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows: "(b) Each individual taxpayer may claim a refundable food/excise tax credit multiplied by the number of qualified exemptions to which the taxpayer is entitled in accordance with the table below; provided that [a husband and wife] spouses filing separate tax returns for a taxable year for which a joint return could have been filed by them shall claim only the tax credit to which they would have been entitled had a joint return been filed. [Adjusted gross income Credit per exemption for taxpayers filing a single return Under $5,000 $110 $5,000 under $10,000 $100 $10,000 under $15,000 $ 85 $15,000 under $20,000 $ 70 $20,000 under $30,000 $ 55 $30,000 and over $ 0. Adjusted gross income Credit per exemption for heads of household, married individuals filing separate returns, and married couples filing joint returns Under $5,000 $110 $5,000 under $10,000 $100 $10,000 under $15,000 $ 85 $15,000 under $20,000 $ 70 $20,000 under $30,000 $ 55 $30,000 under $40,000 $ 45 $40,000 under $50,000 $ 35 $50,000 and over $ 0.] Adjusted gross income Credit per exemption for taxpayers filing a single return Under $15,000 $220 $15,000 under $20,000 $200 $20,000 under $25,000 $170 $25,000 under $30,000 $140 $30,000 under $40,000 $110 $40,000 and over $ 0. Adjusted gross income Credit per exemption for heads of household, surviving spouses, spouses filing separate returns, and married couples filing joint returns Under $15,000 $220 $15,000 under $20,000 $200 $20,000 under $25,000 $170 $25,000 under $30,000 $140 $30,000 under $40,000 $110 $40,000 under $50,000 $ 90 $50,000 under $60,000 $ 70 $60,000 and over $ 0." SECTION 9. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of this Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable. SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 11. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2022. INTRODUCED BY: _____________________________ BY REQUEST
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49	49	SECTION 1. 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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51	51	"§235- Tax credit for teacher expenses. (a) There shall be allowed to each qualifying taxpayer subject to the tax imposed by this chapter, a tax credit for qualifying expenses that shall be deductible from 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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53	53	(b) The amount of the tax credit shall be equal to eighty per cent of the amount expended for qualifying expenses in a taxable year; provided that the credit shall not exceed $500 per taxable year.
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55	55	(c) 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 the credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted.
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57	57	(d) No other tax credit or deduction shall be claimed under this chapter for qualifying expenses for the taxable year.
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59	59	(e) The director of taxation shall prepare such forms as may be necessary to claim a credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91.
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61	61	(f) Claims for the tax credit under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.
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63	63	(g) As used in this section:
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65	65	"Qualifying expenses" means expenses paid or incurred by a qualifying taxpayer in connection with books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment (including related software and services) and other equipment, and supplementary materials used by the qualifying taxpayer in the classroom.
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67	67	"Qualifying taxpayer" means an individual employed by the department of education, a charter school, or a private school in the State as a kindergarten through twelfth‑grade teacher for at least nine hundred hours during the tax year."
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69	69	SECTION 2. Section 235-2.4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
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71	71	"(a) Section 63 (with respect to taxable income defined) of the Internal Revenue Code shall be operative for the purposes of this chapter, subject to the following:
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73	73	(1) Section 63(c)(1)(B) (relating to the additional standard deduction), 63(c)(1)(C) (relating to the real property tax deduction), 63(c)(1)(D) (relating to the disaster loss deduction), 63(c)(1)(E) (relating to the motor vehicle sales tax deduction), 63(c)(4) (relating to inflation adjustments), 63(c)(7) (defining the real property tax deduction), 63(c)(8) (defining the disaster loss deduction), 63(c)(9) (defining the motor vehicle sales tax deduction), and 63(f) (relating to additional amounts for the aged or blind) of the Internal Revenue Code shall not be operative for purposes of this chapter;
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75	75	(2) Section 63(c)(2) (relating to the basic standard deduction) of the Internal Revenue Code shall be operative[, except that the standard deduction amounts provided therein shall instead mean:
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77	77	(A) $4,400 in the case of:
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79	79	(i) A joint return as provided by section 235-93; or
80	80
81	81	(ii) A surviving spouse (as defined in section 2(a) of the Internal Revenue Code);
82	82
83	83	(B) $3,212 in the case of a head of household (as defined in section 2(b) of the Internal Revenue Code);
84	84
85	85	(C) $2,200 in the case of an individual who is not married and who is not a surviving spouse or head of household; or
86	86
87	87	(D) $2,200 in the case of a married individual filing a separate return;]; provided that:
88	88
89	89	(A) The standard deduction amounts provided therein shall instead mean:
90	90
91	91	(i) $10,000 in the case of a joint return as provided by section 235-93 or a surviving spouse (as defined in section 2(a) of the Internal Revenue Code);
92	92
93	93	(ii) $7,500 in the case of a head of household (as defined in section 2(b) of the Internal Revenue Code);
94	94
95	95	(iii) $5,000 in the case of an individual who is not married and who is not a surviving spouse or head of household; or
96	96
97	97	(iv) $5,000 in the case of a married individual filing a separate return;
98	98
99	99	(B) For each taxable year beginning on or after January 1, 2024, the director shall, no later than December 15 of the preceding calendar year, recompute the standard deduction amounts by multiplying the dollar amounts for the previous tax year by the cost-of-living adjustment factor, if the cost-of-living adjustment factor is greater than zero, and rounding off the resulting product to the nearest $1. If the cost-of-living adjustment factor is less than zero in a given year, then no adjustment will occur in the following year. For purposes of this subparagraph, the cost-of-living adjustment factor is calculated by adding 1.0 to the percentage change in the Urban Hawaii Consumer Price Index for all items, as published by the United States Department of Labor, from July of the prior calendar year to July of the current calendar year. If the Urban Hawaii Consumer Price Index is discontinued, the Chained Consumer Price Index for all urban areas for all items, as published by the United States Department of Labor, shall be used to calculate the cost-of-living adjustment;
100	100
101	101	(3) Section 63(c)(5) (limiting the basic standard deduction in the case of certain dependents) of the Internal Revenue Code shall be operative, except that the limitation shall be the greater of $500 or the individual's earned income; and
102	102
103	103	(4) The standard deduction amount for nonresidents shall be calculated pursuant to section 235-5."
104	104
105	105	SECTION 3. Section 235-51, Hawaii Revised Statutes, is amended to read as follows:
106	106
107	107	"§235-51 Tax imposed on individuals; rates. (a) There is hereby imposed on the taxable income of every:
108	108
109	109	(1) Taxpayer who files a joint return under section 235-93; and
110	110
111	111	(2) Surviving spouse,
112	112
113	113	a tax determined in accordance with the following table:
114	114
115	115	[In the case of any taxable year beginning after December 31, 2017:
116	116
117	117	If the taxable income is: The tax shall be:
118	118
119	119	Not over $4,800 1.40% of taxable income
120	120
121	121	Over $4,800 but $67.00 plus 3.20% of
122	122
123	123	not over $9,600 excess over $4,800
124	124
125	125	Over $9,600 but $221.00 plus 5.50% of
126	126
127	127	not over $19,200 excess over $9,600
128	128
129	129	Over $19,200 but $749.00 plus 6.40% of
130	130
131	131	not over $28,800 excess over $19,200
132	132
133	133	Over $28,800 but $1,363.00 plus 6.80% of
134	134
135	135	not over $38,400 excess over $28,800
136	136
137	137	Over $38,400 but $2,016.00 plus 7.20% of
138	138
139	139	not over $48,000 excess over $38,400
140	140
141	141	Over $48,000 but $2,707.00 plus 7.60% of
142	142
143	143	not over $72,000 excess over $48,000
144	144
145	145	Over $72,000 but $4,531.00 plus 7.90% of
146	146
147	147	not over $96,000 excess over $72,000
148	148
149	149	Over $96,000 but $6,427.00 plus 8.25% of
150	150
151	151	not over $300,000 excess over $96,000
152	152
153	153	Over $300,000 but $23,257.00 plus 9.00% of
154	154
155	155	not over $350,000 excess over $300,000
156	156
157	157	Over $350,000 but $27,757.00 plus 10.00% of
158	158
159	159	not over $400,000 excess over $350,000
160	160
161	161	Over $400,000 $32,757.00 plus 11.00% of
162	162
163	163	excess over $400,000.]
164	164
165	165	In the case of any taxable year beginning after December 31, 2022:
166	166
167	167	If the taxable income is: The tax shall be:
168	168
169	169	Not over $5,126 1.40% of taxable income
170	170
171	171	Over $5,126 but $72.00 plus 3.20% of
172	172
173	173	not over $10,253 excess over $5,126
174	174
175	175	Over $10,253 but $236.00 plus 5.50% of
176	176
177	177	not over $20,506 excess over $10,253
178	178
179	179	Over $20,506 but $800.00 plus 6.40% of
180	180
181	181	not over $30,758 excess over $20,506
182	182
183	183	Over $30,758 but $1,456.00 plus 6.80% of
184	184
185	185	not over $41,011 excess over $30,758
186	186
187	187	Over $41,011 but $2,153.00 plus 7.20% of
188	188
189	189	not over $51,264 excess over $41,011
190	190
191	191	Over $51,264 but $2,891.00 plus 7.60% of
192	192
193	193	not over $76,896 excess over $51,264
194	194
195	195	Over $76,896 but $4,839.00 plus 7.90% of
196	196
197	197	not over $102,528 excess over $76,896
198	198
199	199	Over $102,528 but $6,864.00 plus 8.25% of
200	200
201	201	not over $320,400 excess over $102,528
202	202
203	203	Over $320,400 but $24,839.00 plus 9.00% of
204	204
205	205	not over $373,800 excess over $320,400
206	206
207	207	Over $373,800 but $29,645.00 plus 10.00% of
208	208
209	209	not over $427,200 excess over $373,800
210	210
211	211	Over $427,200 $34,985.00 plus 11.00% of
212	212
213	213	excess over $427,200.
214	214
215	215	(b) There is hereby imposed on the taxable income of every head of a household a tax determined in accordance with the following table:
216	216
217	217	[In the case of any taxable year beginning after December 31, 2017:
218	218
219	219	If the taxable income is: The tax shall be:
220	220
221	221	Not over $3,600 1.40% of taxable income
222	222
223	223	Over $3,600 but $50.00 plus 3.20% of
224	224
225	225	not over $7,200 excess over $3,600
226	226
227	227	Over $7,200 but $166.00 plus 5.50% of
228	228
229	229	not over $14,400 excess over $7,200
230	230
231	231	Over $14,400 but $562.00 plus 6.40% of
232	232
233	233	not over $21,600 excess over $14,400
234	234
235	235	Over $21,600 but $1,022.00 plus 6.80% of
236	236
237	237	not over $28,800 excess over $21,600
238	238
239	239	Over $28,800 but $1,512.00 plus 7.20% of
240	240
241	241	not over $36,000 excess over $28,800
242	242
243	243	Over $36,000 but $2,030.00 plus 7.60% of
244	244
245	245	not over $54,000 excess over $36,000
246	246
247	247	Over $54,000 but $3,398.00 plus 7.90% of
248	248
249	249	not over $72,000 excess over $54,000
250	250
251	251	Over $72,000 but $4,820.00 plus 8.25% of
252	252
253	253	not over $225,000 excess over $72,000
254	254
255	255	Over $225,000 but $17,443.00 plus 9.00% of
256	256
257	257	not over $262,500 excess over $225,000
258	258
259	259	Over $262,500 but $20,818.00 plus 10.00% of
260	260
261	261	not over $300,000 excess over $262,500
262	262
263	263	Over $300,000 $24,568.00 plus 11.00% of
264	264
265	265	excess over $300,000.]
266	266
267	267	In the case of any taxable year beginning after December 31, 2022:
268	268
269	269	If the taxable income is: The tax shall be:
270	270
271	271	Not over $3,845 1.40% of taxable income
272	272
273	273	Over $3,845 but $54.00 plus 3.20% of
274	274
275	275	not over $7,690 excess over $3,845
276	276
277	277	Over $7,690 but $177.00 plus 5.50% of
278	278
279	279	not over $15,379 excess over $7,690
280	280
281	281	Over $15,379 but $600.00 plus 6.40% of
282	282
283	283	not over $23,069 excess over $15,379
284	284
285	285	Over $23,069 but $1,092.00 plus 6.80% of
286	286
287	287	not over $30,758 excess over $23,069
288	288
289	289	Over $30,758 but $1,615.00 plus 7.20% of
290	290
291	291	not over $38,448 excess over $30,758
292	292
293	293	Over $38,448 but $2,168.00 plus 7.60% of
294	294
295	295	not over $57,672 excess over $38,448
296	296
297	297	Over $57,672 but $3,629.00 plus 7.90% of
298	298
299	299	not over $76,896 excess over $57,672
300	300
301	301	Over $76,896 but $5,148.00 plus 8.25% of
302	302
303	303	not over $240,300 excess over $76,896
304	304
305	305	Over $240,300 but $18,629.00 plus 9.00% of
306	306
307	307	not over $280,350 excess over $240,300
308	308
309	309	Over $280,350 but $22,234.00 plus 10.00% of
310	310
311	311	not over $320,400 excess over $280,350
312	312
313	313	Over $320,400 $26,239.00 plus 11.00% of
314	314
315	315	excess over $320,400.
316	316
317	317	(c) There is hereby imposed on the taxable income of (1) every unmarried individual (other than a surviving spouse, or the head of a household) and (2) on the taxable income of every married individual who does not make a single return jointly with the individual's spouse under section 235-93 a tax determined in accordance with the following table:
318	318
319	319	[In the case of any taxable year beginning after December 31, 2017:
320	320
321	321	If the taxable income is: The tax shall be:
322	322
323	323	Not over $2,400 1.40% of taxable income
324	324
325	325	Over $2,400 but $34.00 plus 3.20% of
326	326
327	327	not over $4,800 excess over $2,400
328	328
329	329	Over $4,800 but $110.00 plus 5.50% of
330	330
331	331	not over $9,600 excess over $4,800
332	332
333	333	Over $9,600 but $374.00 plus 6.40% of
334	334
335	335	not over $14,400 excess over $9,600
336	336
337	337	Over $14,400 but $682.00 plus 6.80% of
338	338
339	339	not over $19,200 excess over $14,400
340	340
341	341	Over $19,200 but $1,008.00 plus 7.20% of
342	342
343	343	not over $24,000 excess over $19,200
344	344
345	345	Over $24,000 but $1,354.00 plus 7.60% of
346	346
347	347	not over $36,000 excess over $24,000
348	348
349	349	Over $36,000 but $2,266.00 plus 7.90% of
350	350
351	351	not over $48,000 excess over $36,000
352	352
353	353	Over $48,000 but $3,214.00 plus 8.25% of
354	354
355	355	not over $150,000 excess over $48,000
356	356
357	357	Over $150,000 but $11,629.00 plus 9.00% of
358	358
359	359	not over $175,000 excess over $150,000
360	360
361	361	Over $175,000 but $13,879.00 plus 10.00% of
362	362
363	363	not over $200,000 excess over $175,000
364	364
365	365	Over $200,000 $16,379.00 plus 11.00% of
366	366
367	367	excess over $200,000.]
368	368
369	369	In the case of any taxable year beginning after December 31, 2022:
370	370
371	371	If the taxable income is: The tax shall be:
372	372
373	373	Not over $2,563 1.40% of taxable income
374	374
375	375	Over $2,563 but $36.00 plus 3.20% of
376	376
377	377	not over $5,126 excess over $2,400
378	378
379	379	Over $5,126 but $118.00 plus 5.50% of
380	380
381	381	not over $10,253 excess over $5,126
382	382
383	383	Over $10,253 but $400.00 plus 6.40% of
384	384
385	385	not over $15,379 excess over $10,253
386	386
387	387	Over $15,379 but $728.00 plus 6.80% of
388	388
389	389	not over $20,506 excess over $15,379
390	390
391	391	Over $20,506 but $1,077.00 plus 7.20% of
392	392
393	393	not over $25,632 excess over $20,506
394	394
395	395	Over $25,632 but $1,446.00 plus 7.60% of
396	396
397	397	not over $38,448 excess over $25,632
398	398
399	399	Over $38,448 but $2,420.00 plus 7.90% of
400	400
401	401	not over $51,264 excess over $38,448
402	402
403	403	Over $51,264 but $3,432.00 plus 8.25% of
404	404
405	405	not over $160,200 excess over $51,264
406	406
407	407	Over $160,200 but $12,419.00 plus 9.00% of
408	408
409	409	not over $186,900 excess over $160,200
410	410
411	411	Over $186,900 but $14,822.00 plus 10.00% of
412	412
413	413	not over $213,600 excess over $186,900
414	414
415	415	Over $213,600 $17,492.00 plus 11.00% of
416	416
417	417	excess over $213,600.
418	418
419	419	(d) The tax imposed by section 235-2.45 on estates and trusts shall be determined in accordance with the following table:
420	420
421	421	In the case of any taxable year beginning after December 31, 2001:
422	422
423	423	If the taxable income is: The tax shall be:
424	424
425	425	Not over $2,000 1.40% of taxable income
426	426
427	427	Over $2,000 but $28.00 plus 3.20% of
428	428
429	429	not over $4,000 excess over $2,000
430	430
431	431	Over $4,000 but $92.00 plus 5.50% of
432	432
433	433	not over $8,000 excess over $4,000
434	434
435	435	Over $8,000 but $312.00 plus 6.40% of
436	436
437	437	not over $12,000 excess over $8,000
438	438
439	439	Over $12,000 but $568.00 plus 6.80% of
440	440
441	441	not over $16,000 excess over $12,000
442	442
443	443	Over $16,000 but $840.00 plus 7.20% of
444	444
445	445	not over $20,000 excess over $16,000
446	446
447	447	Over $20,000 but $1,128.00 plus 7.60% of
448	448
449	449	not over $30,000 excess over $20,000
450	450
451	451	Over $30,000 but $1,888.00 plus 7.90% of
452	452
453	453	not over $40,000 excess over $30,000
454	454
455	455	Over $40,000 $2,678.00 plus 8.25% of
456	456
457	457	excess over $40,000.
458	458
459	459	(e) Any taxpayer, other than a corporation, acting as a business entity in more than one state who is required by this chapter to file a return may elect to report and pay a tax of .5 per cent of the taxpayer's annual gross sales if the:
460	460
461	461	(1) Taxpayer's only activities in this State consist of sales;
462	462
463	463	(2) Taxpayer does not own or rent real estate or tangible personal property; and
464	464
465	465	(3) Taxpayer's annual gross sales in or into this State during the tax year is not in excess of $100,000.
466	466
467	467	(f) If a taxpayer has a net capital gain for any taxable year to which this subsection applies, then the tax imposed by this section shall not exceed the sum of:
468	468
469	469	(1) The tax computed at the rates and in the same manner
470	470
471	471	as if this subsection had not been enacted on the greater of:
472	472
473	473	(A) The taxable income reduced by the amount of net capital gain, or
474	474
475	475	(B) The amount of taxable income taxed at a rate below 7.25 per cent, plus
476	476
477	477	(2) A tax of 7.25 per cent of the amount of taxable income in excess of the amount determined under paragraph (1).
478	478
479	479	This subsection shall apply to individuals, estates, and trusts for taxable years beginning after December 31, 1986.
480	480
481	481	(g) For each taxable year beginning on or after January 1, 2024, the director shall, no later than December 15 of the preceding calendar year, recompute the taxable income amounts within each of the income brackets in subsections (a), (b), and (c) by multiplying the taxable income amounts within each income bracket for the previous tax year by the cost-of-living adjustment factor, if the cost-of-living adjustment factor is greater than zero, and rounding off the resulting product to the nearest $1. If the cost-of-living adjustment factor is less than zero in a given year, then no adjustment will occur in the following year. For purposes of this subsection, the cost-of-living adjustment factor is calculated by adding 1.0 to the percentage change in the Urban Hawaii Consumer Price Index for all items, as published by the United States Department of Labor, from July of the prior calendar year to July of the current calendar year. If the Urban Hawaii Consumer Price Index is discontinued, the Chained Consumer Price Index for all urban areas for all items, as published by the United States Department of Labor, shall be used to calculate the cost-of-living adjustment. Nothing in this subsection shall be construed as permitting an adjustment to the rates of tax in subsections (a), (b), and (c)."
482	482
483	483	SECTION 4. Section 235-54, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
484	484
485	485	"(a) In computing the taxable income of any individual, there shall be deducted, in lieu of the personal exemptions allowed by the Internal Revenue Code, personal exemptions computed as follows: Ascertain the number of exemptions which the individual can lawfully claim under the Internal Revenue Code, add an additional exemption for the taxpayer or the taxpayer's spouse who is sixty-five years of age or older within the taxable year, and multiply that number by [$1,144,] $2,288, for taxable years beginning after December 31, [1984.] 2022. A nonresident shall prorate the personal exemptions on account of income from sources outside the State as provided in section 235-5. In the case of an individual with respect to whom an exemption under this section is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual's taxable year begins, the personal exemption amount applicable to such individual under this subsection for such individual's taxable year shall be zero.
486	486
487	487	For each taxable year beginning on or after January 1, 2024, the director shall, no later than December 15 of the preceding calendar year, recompute the personal exemption amount by multiplying the dollar amount for the previous tax year by the cost-of-living adjustment factor, if the cost-of-living adjustment factor is greater than zero, and rounding off the resulting product to the nearest $1. If the cost-of-living adjustment factor is less than zero in a given year, then no adjustment will occur in the following year. For purposes of this subsection, the cost-of-living adjustment factor is calculated by adding 1.0 to the percentage change in the Urban Hawaii Consumer Price Index for all items, as published by the United States Department of Labor, from July of the prior calendar year to July of the current calendar year. If the Urban Hawaii Consumer Price Index is discontinued, the Chained Consumer Price Index for all urban areas for all items, as published by the United States Department of Labor, shall be used to calculate the cost-of-living adjustment."
488	488
489	489	SECTION 5. Section 235-55.6, Hawaii Revised Statutes, is amended as follows:
490	490
491	491	(1) By amending subsection (a) to read as follows:
492	492
493	493	"(a) Allowance of credit.
494	494
495	495	(1) In general. For each resident taxpayer, who files an individual income tax return for a taxable year, and who is not claimed or is not otherwise eligible to be claimed as a dependent by another taxpayer for federal or Hawaii state individual income tax purposes, who maintains a household which includes as a member one or more qualifying individuals (as defined in subsection (b)(1)), there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the applicable percentage of the employment-related expenses (as defined in subsection (b)(2)) paid by the individual during the taxable year. If the tax credit claimed by a resident taxpayer exceeds the amount of income tax payment due from the resident taxpayer, the excess of the credit over payments due shall be refunded to the resident taxpayer; provided that tax credit properly claimed by a resident individual who has no income tax liability shall be paid to the resident individual; and provided further that no refunds or payment on account of the tax credit allowed by this section shall be made for amounts less than $1.
496	496
497	497	(2) Applicable percentage. For purposes of paragraph (1), the taxpayer's applicable percentage shall be determined as follows:
498	498
499	499	Adjusted gross income Applicable percentage
500	500
501	501	[Not over $25,000 25%
502	502
503	503	Over $25,000 but 24%
504	504
505	505	not over $30,000
506	506
507	507	Over $30,000 but 23%
508	508
509	509	not over $35,000
510	510
511	511	Over $35,000 but 22%
512	512
513	513	not over $40,000
514	514
515	515	Over $40,000 but 21%
516	516
517	517	not over $45,000
518	518
519	519	Over $45,000 but 20%
520	520
521	521	not over $50,000
522	522
523	523	Over $50,000 15%.]
524	524
525	525	Not over $150,000 50%
526	526
527	527	Over $150,000 but 45%
528	528
529	529	not over $165,000
530	530
531	531	Over $165,000 but 40%
532	532
533	533	not over $180,000
534	534
535	535	Over $180,000 but 35%
536	536
537	537	not over $195,000
538	538
539	539	Over $195,000 but 30%
540	540
541	541	not over $210,000
542	542
543	543	Over $210,000 but 25%
544	544
545	545	not over $225,000
546	546
547	547	Over $225,000 20%."
548	548
549	549	(2) By amending subsection (c) to read as follows:
550	550
551	551	"(c) Dollar limit on amount creditable. The amount of the employment-related expenses incurred during any taxable year which may be taken into account under subsection (a) shall not exceed:
552	552
553	553	(1) [$2,400] $10,000 if there is one qualifying individual with respect to the taxpayer for such taxable year, or
554	554
555	555	(2) [$4,800] $20,000 if there are two or more qualifying individuals with respect to the taxpayer for such taxable year.
556	556
557	557	The amount determined under paragraph (1) or (2) (whichever is applicable) shall be reduced by the aggregate amount excludable from gross income under section 129 (with respect to dependent care assistance programs) of the Internal Revenue Code for the taxable year."
558	558
559	559	SECTION 6. Section 235-55.7, Hawaii Revised Statutes, is amended as follows:
560	560
561	561	(1) By amending subsection (a) to read as follows:
562	562
563	563	"(a) As used in this section:
564	564
565	565	(1) "Adjusted gross income" [is defined by section 235-1.] means adjusted gross income as defined by the Internal Revenue Code.
566	566
567	567	(2) "Qualified exemption" includes those exemptions permitted under this chapter; provided that a person for whom exemption is claimed has physically resided in the State for more than nine months during the taxable year; and provided that multiple exemption shall not be granted because of deficiencies in vision, hearing, or other disability.
568	568
569	569	(3) "Rent" means the amount paid in cash in any taxable year for the occupancy of a dwelling place which is used by a resident taxpayer or the resident taxpayer's immediate family as the principal residence in this State. Rent is limited to the amount paid for the occupancy of the dwelling place only, and is exclusive of charges for utilities, parking stalls, storage of goods, yard services, furniture, furnishings, and the like. Rent shall not include any rental claimed as a deduction from gross income or adjusted gross income for income tax purposes, any ground rental paid for use of land only, and any rent allowance or subsidies received."
570	570
571	571	(2) By amending subsection (c) to read as follows:
572	572
573	573	"(c) Each taxpayer [with an adjusted gross income of less than $30,000] who has paid more than [$1,000] $2,500 in rent during the taxable year for which the credit is claimed may claim a tax credit [of $50] multiplied by the number of qualified exemptions to which the taxpayer is entitled[;] in accordance with the table below; provided each taxpayer sixty-five years of age or over may claim double the tax credit; and provided that a resident individual who has no income or no income taxable under this chapter may also claim the tax credit as set forth in this section.
574	574
575	575	Adjusted gross income Credit per exemption
576	576
577	577	for taxpayers filing
578	578
579	579	a single return and
580	580
581	581	married individuals
582	582
583	583	filing separate returns
584	584
585	585	Under $20,000 $350
586	586
587	587	$20,000 under $30,000 $250
588	588
589	589	$30,000 under $40,000 $150
590	590
591	591	$40,000 and over $ 0
592	592
593	593
594	594
595	595	Adjusted gross income Credit per exemption
596	596
597	597	for married couples
598	598
599	599	filing joint returns
600	600
601	601	and surviving spouses
602	602
603	603	Under $40,000 $350
604	604
605	605	$40,000 under $60,000 $250
606	606
607	607	$60,000 under $80,000 $150
608	608
609	609	$80,000 and over $ 0
610	610
611	611
612	612
613	613	Adjusted gross income Credit per exemption
614	614
615	615	for heads of household
616	616
617	617	Under $30,000 $350
618	618
619	619	$30,000 under $45,000 $250
620	620
621	621	$45,000 under $60,000 $150
622	622
623	623	$60,000 and over $ 0."
624	624
625	625	SECTION 7. Section 235-55.75, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
626	626
627	627	"(a) Each qualifying individual taxpayer may claim a refundable earned income tax credit. The tax credit, for the appropriate taxable year, shall be [twenty] thirty per cent of the federal earned income tax credit allowed and properly claimed under section 32 of the Internal Revenue Code and reported as such on the individual's federal income tax return."
628	628
629	629	SECTION 8. Section 235-55.85, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
630	630
631	631	"(b) Each individual taxpayer may claim a refundable food/excise tax credit multiplied by the number of qualified exemptions to which the taxpayer is entitled in accordance with the table below; provided that [a husband and wife] spouses filing separate tax returns for a taxable year for which a joint return could have been filed by them shall claim only the tax credit to which they would have been entitled had a joint return been filed.
632	632
633	633	[Adjusted gross income Credit per exemption
634	634
635	635	for taxpayers filing
636	636
637	637	a single return
638	638
639	639	Under $5,000 $110
640	640
641	641	$5,000 under $10,000 $100
642	642
643	643	$10,000 under $15,000 $ 85
644	644
645	645	$15,000 under $20,000 $ 70
646	646
647	647	$20,000 under $30,000 $ 55
648	648
649	649	$30,000 and over $ 0.
650	650
651	651	Adjusted gross income Credit per exemption
652	652
653	653	for heads of household,
654	654
655	655	married individuals filing
656	656
657	657	separate returns, and
658	658
659	659	married couples filing
660	660
661	661	joint returns
662	662
663	663	Under $5,000 $110
664	664
665	665	$5,000 under $10,000 $100
666	666
667	667	$10,000 under $15,000 $ 85
668	668
669	669	$15,000 under $20,000 $ 70
670	670
671	671	$20,000 under $30,000 $ 55
672	672
673	673	$30,000 under $40,000 $ 45
674	674
675	675	$40,000 under $50,000 $ 35
676	676
677	677	$50,000 and over $ 0.]
678	678
679	679	Adjusted gross income Credit per exemption
680	680
681	681	for taxpayers filing
682	682
683	683	a single return
684	684
685	685	Under $15,000 $220
686	686
687	687	$15,000 under $20,000 $200
688	688
689	689	$20,000 under $25,000 $170
690	690
691	691	$25,000 under $30,000 $140
692	692
693	693	$30,000 under $40,000 $110
694	694
695	695	$40,000 and over $ 0.
696	696
697	697	Adjusted gross income Credit per exemption
698	698
699	699	for heads of household,
700	700
701	701	surviving spouses,
702	702
703	703	spouses filing
704	704
705	705	separate returns, and
706	706
707	707	married couples filing
708	708
709	709	joint returns
710	710
711	711	Under $15,000 $220
712	712
713	713	$15,000 under $20,000 $200
714	714
715	715	$20,000 under $25,000 $170
716	716
717	717	$25,000 under $30,000 $140
718	718
719	719	$30,000 under $40,000 $110
720	720
721	721	$40,000 under $50,000 $ 90
722	722
723	723	$50,000 under $60,000 $ 70
724	724
725	725	$60,000 and over $ 0."
726	726
727	727	SECTION 9. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of this Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.
728	728
729	729	SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
730	730
731	731	SECTION 11. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2022.
732	732
733	733
734	734
735	735	INTRODUCED BY: _____________________________
736	736	BY REQUEST
737	737
738	738	INTRODUCED BY:
739	739
740	740	_____________________________
741	741
742	742
743	743
744	744
745	745
746	746	BY REQUEST
747	747
748	748	Report Title: Income Tax; Income Tax Credits; Income Tax Brackets; Teacher Expenses Description: Adds new tax credit for teacher's expenses. Adds an inflation index for the income tax brackets, personal exemption amount and standard deduction amounts. Increases the amounts for the income tax brackets, personal exemption amount and standard deduction amounts for tax year 2023. Increases the adjusted gross income amounts for the qualification of low-income credits. Increases the amount of the credits that assist working families. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
749	749
750	750
751	751
752	752
753	753
754	754	Report Title:
755	755
756	756	Income Tax; Income Tax Credits; Income Tax Brackets; Teacher Expenses
757	757
758	758
759	759
760	760	Description:
761	761
762	762	Adds new tax credit for teacher's expenses. Adds an inflation index for the income tax brackets, personal exemption amount and standard deduction amounts. Increases the amounts for the income tax brackets, personal exemption amount and standard deduction amounts for tax year 2023. Increases the adjusted gross income amounts for the qualification of low-income credits. Increases the amount of the credits that assist working families.
763	763
764	764
765	765
766	766
767	767
768	768
769	769
770	770	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.