HB 1147 Hawaii House · 2025 Regular Session

RELATING TO THE EARNED INCOME TAX CREDIT.

Summary

Clarifies that nonresidents who claim the state refundable earned income tax credit are required to adjust the amount claimed using the ratio of their Hawaii adjusted gross income to federal adjusted gross income. Eliminates the unlimited carryforward on nonrefundable earned income tax credits claimed for tax year 2022. Effective 7/1/3000. (HD1)

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Mar 2025

House Passage

Mar 2025

Senate Passage

Governor

Introduced Jan 21, 2025 Last action Apr 1, 2025

Maddy AI version diff · 1 comparison

What changed between versions

HB1147 → HB1147_HD1 · 3 edits

MINOR

This bill clarifies how nonresidents must calculate their Hawaii earned income tax credit by requiring them to adjust the credit based on the ratio of their Hawaii income to federal income, similar to the rule for part-year residents. It also sets expiration dates for carrying forward unused nonrefundable credits, limiting them to tax years beginning after December 31, 2024, and preventing credits from tax years after December 31, 2021, from being used after December 31, 2025.

Scope change

The bill expands the income adjustment requirement to include nonresidents, who were previously not explicitly required to adjust their credit calculations the same way part-year residents must.

ELIGIBILITY

Nonresidents claiming the earned income tax credit must now adjust their credit amount using the ratio of Hawaii adjusted gross income to federal adjusted gross income, aligning their treatment with part-year residents.

TIMELINE

Unused nonrefundable earned income tax credits can only be carried forward to tax years beginning after December 31, 2024, and credits from tax years after December 31, 2021, cannot be used after December 31, 2025.

TECHNICAL

The effective date was changed from upon approval to July 1, 3000, with application to taxable years beginning after December 31, 2024.

Floor votes

How they voted

This bill passed the House by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 25, 2025

Upper · Passed

The committee(s) on WAM has scheduled a public hearing on 03-28-25 10:00AM; Conference Room 211 & Videoconference.

upper

Mar 6, 2025

Committee

Referred to WAM.

upper

Mar 6, 2025

Introduced

Received from House (Hse. Com. No. 335).

upper

Mar 4, 2025

Lower · Passed

Passed Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Pierick, Ward excused (2). Transmitted to Senate.

lower

Feb 19, 2025

Lower · Passed

The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 12 Ayes: Representative(s) Yamashita, Takenouchi, Holt, Hussey, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Reyes Oda; Ayes with reservations: none; Noes: none; and 4 Excused: Representative(s) Grandinetti, Keohokapu-Lee Loy, Alcos, Ward.

lower

Jan 23, 2025

Committee

Referred to FIN, referral sheet 3

lower

Jan 23, 2025

Introduced

Introduced and Pass First Reading.

lower

Jan 21, 2025

Introduced

Pending introduction.

lower

1 primary · 0 co-sponsors