Budget & Taxes (Income Tax)

in committee · Hawaii · Senate Jan 28, 2026

SB 2441: RELATING TO CAPITAL GAINS.

SB 2441 would tax profits from selling investments (like stocks or property) at the same rate as regular income, such as wages. This directly affects individuals and investors who earn capital gains, particularly higher earners who currently benefit from lower tax rates on these profits. The bill replaces the current preferential tax rate for capital gains with the standard income tax rate. This policy change would increase the tax burden for many investors who sell assets at a profit. The bill is currently in committee referral after its initial introduction and first reading.

Topics ✓ Budget & TaxesSupports Budget & TaxesRepeals preferential capital gains tax rate, closing a loophole to increase revenue from higher earners, aligning with fiscal responsibility indicators.95% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Hawaii · Senate Dec 8, 2025

SB 369: RELATING TO RESILIENCY.

Establishes the Food and Beverage Supply Chain Resiliency Income Tax Credit to be administered by the Department of Business, Economic Development, and Tourism and Department of Taxation. Requires DBEDT to establish expedited permitting processes for food and beverage supply chain activities.

Topics ✓ Budget & TaxesSupports Budget & TaxesEstablishes tax credit for food/beverage supply chain, providing tax relief and supporting business resiliency through fiscal policy.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Hawaii · House Dec 8, 2025

HB 283: RELATING TO INCOME TAX.

HB 283 would eliminate the state individual income tax, meaning residents would no longer owe this tax on their earnings. It directly affects all state residents who currently pay individual income tax, including wage earners and those with investment income. The key provision is the complete removal of the tax, shifting the state's revenue focus away from personal income. The bill is currently pending in committee and has not yet advanced to a vote.

Topics ✗ Budget & TaxesOpposes Budget & TaxesEliminates state individual income tax, removing a primary revenue source and shifting fiscal focus away from personal income taxation.95% confidence

Sub-Topics Business Taxes Income Tax Sales Tax

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passed · Hawaii · Senate Dec 8, 2025

SB 596: RELATING TO TAXATION.

Establishes an income tax credit for the purchase of electric garbage trucks by qualified taxpayers. Applies to taxable years beginning after 12/31/2024.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates income tax credit for electric truck purchases, providing targeted tax relief to incentivize green business investment within fiscal management framework.95% confidence ✓ EnergySupports EnergyTax credit for electric garbage trucks promotes renewable energy adoption and reduces fossil fuel dependence in transportation.90% confidence ✓ TransportationSupports TransportationProvides income tax credit for electric garbage trucks, promoting sustainable transportation infrastructure and vehicle electrification.90% confidence

Sub-Topics Business Taxes Income Tax Tax Credits Electric Vehicles

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in committee · Hawaii · House Feb 19, 2026

HB 1729: RELATING TO TAXATION.

HB 1729 would remove the state income tax deduction for mortgage interest paid on second homes. This directly affects homeowners who own vacation properties, rental properties, or additional residences beyond their primary home. The bill changes state tax law so that interest on loans for these second properties no longer reduces taxable income. It does not apply to primary residences or federal tax rules.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves tax deduction for second home mortgage interest, closing a tax loophole to increase state revenue and strengthen fiscal management.90% confidence

Sub-Topics Income Tax

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in committee · Hawaii · House Jan 28, 2026

HB 2032: RELATING TO TAXATION.

PART II: Exempts the sale of groceries and nonprescription drugs from the general excise tax. PART III: Removes the state income tax on unemployment compensation benefits. PART IV: Doubles the standard deduction for individuals earning less than $100,000 and joint filers earning less than $200,000. Repeals the incremental increases on standard income tax deduction amounts. PART V: Increases the maximum adjusted gross income allowed to qualify for the low-income household renters' income tax credit and increases the credit amount. PART VI: Repeals the incremental changes to income tax brackets and removes the tax liability for the first $100,000 of individual income earned.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts groceries/nonprescription drugs from tax, removes income tax on unemployment benefits, doubles standard deductions for lower/middle-income earners, and increases low-income renters' tax credit.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentRemoves tax on unemployment benefits and increases tax deductions for low/middle-income earners, directly supporting workers' financial stability and reducing tax burden on employment income.85% confidence

Sub-Topics Business Taxes Income Tax Sales Tax Unemployment Workers' Compensation

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in committee · Hawaii · Senate Dec 8, 2025

SB 1013: RELATING TO THE EARNED INCOME TAX CREDIT.

SB 1013 expands the state's Earned Income Tax Credit (EITC) by allowing qualifying low-to-moderate income taxpayers who claim a dependent under age 18 to receive an additional credit amount. This directly affects working families with children in that age group who currently qualify for the EITC but may not have received the full benefit for younger dependents. The key provision increases the credit amount for these taxpayers, providing more tax relief based on the number of qualifying children under 18. The bill is still in committee review and has not yet been enacted.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands EITC for low-income families with children, providing direct tax relief and increasing credit amounts per qualifying dependents.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Hawaii · House Dec 8, 2025

HB 959: RELATING TO TAXATION.

Exempts the sale of groceries and nonprescription drugs from the general excise tax. Incrementally increases the general excise tax over four years, with the increased proceeds during certain fiscal years to be deposited into the general fund. Removes the state income tax on unemployment compensation benefits. Doubles the standard deduction for individuals earning less than $100,000 and joint returns earning less than $200,000. Repeals the incremental increases on standard income tax deduction amounts. Increases the minimum income threshold and exemption amount for the low-income household renters' income tax credit. Removes the tax liability for the first $100,000 of individual income earned. Establishes the Maui Recovery Special Fund to be used for recovery programs related to the 2023 Maui wildfires. Appropriates funds. Applies to taxable years beginning after 12/31/2024.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts groceries/nonprescription drugs from tax, removes income tax on unemployment, and doubles standard deductions for lower/middle income earners, providing direct tax relief.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentRemoves income tax on unemployment benefits, increasing take-home pay for workers during job loss, directly supporting unemployment benefits as a key labor/employment safety net.95% confidence

Sub-Topics Income Tax Sales Tax Tax Credits Unemployment Workers' Compensation

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passed · Hawaii · House Mar 12, 2026

HB 1851: RELATING TO TAXATION.

Establishes an apprenticeship program income tax credit for certain qualified costs incurred by a taxpayer for a qualified apprenticeship program. Sunsets 12/31/2036. Effective 7/1/3000. (HD3)

Topics ✓ Budget & TaxesSupports Budget & TaxesEstablishes tax credit for apprenticeship programs, providing targeted tax relief to encourage workforce development and economic growth within state fiscal framework.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentTax credit incentivizes apprenticeship programs, advancing workforce development and employment opportunities, aligning with Labor & Employment support indicators.85% confidence

Sub-Topics Income Tax Tax Credits Apprenticeships

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in committee · Hawaii · House Feb 12, 2026

HB 1458: RELATING TO TAXATION OF ADVERTISING REVENUE BY MAJOR SOCIAL MEDIA PLATFORMS.

Establishes the Broadband and Digital Equity Special Fund to receive revenues earned by major social media platforms to fund initiatives expanding broadband access and local journalism initiatives. Directs the Department of Taxation to apply the state corporate income tax to advertising revenue earned by major social media platforms if the revenue is derived from content created within the State or from audiences located in the State. Appropriates funds. Effective 7/1/3000. (HD1)

Topics ✓ Budget & TaxesSupports Budget & TaxesApplies corporate tax on social media ad revenue, funds broadband/journalism via new appropriation, strengthening tax base and funding public services.95% confidence ✓ TechnologySupports TechnologyDirectly funds broadband expansion and digital equity initiatives via tax on social media ad revenue, aligning with 'expands internet access' and 'promotes digital equity' indicators.95% confidence

Sub-Topics Business Taxes Income Tax Broadband Access Social Media

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