All Roll Calls
Yes: 146 • No: 0
HawaiiSB 14662025–2026 Regular Session (Year 1)SenateWALLET
RELATING TO THE EARNED INCOME TAX CREDIT.
Sponsored By: Ronald D. Kouchi (Democratic)
Signed by Governor
Summary
Clarifies that nonresidents who claim the 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 for tax year 2022.
Income TaxEarned Income Tax CreditFIN
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 0 benefits, 0 costs, 2 mixed.
Refundable tax credit for Hawaii workers
Starting with taxable years beginning after December 31, 2024, eligible taxpayers can claim a refundable Hawaii credit equal to 40% of their federal earned income credit. You must claim the federal credit and file a Hawaii return with the same filing status and dependents. Part-year residents and nonresidents get a credit adjusted by the share of their adjusted gross income attributed to Hawaii. The change remains in place when this law section is reenacted on December 31, 2027.
Tax credit carryforwards face deadlines
When nonrefundable credits claimed over any four consecutive taxable years beginning after December 31, 2017, exceed the tax owed for the original claim year, the excess can carry forward until used. These carryforwards cannot be used for taxable years beginning after December 31, 2024. A separate rule bars use after December 31, 2025, for credits claimed for taxable years beginning after December 31, 2021.
Sponsors & Cosponsors
Sponsor
Ronald D. Kouchi
Democratic • Senate
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 4/8/2025
House Floor Vote
Yes: 49 • No: 0
House vote • 4/4/2025
House Floor Vote
Yes: 49 • No: 0
House vote • 3/27/2025
The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes ...
Yes: 13 • No: 0
Senate vote • 2/19/2025
Senate Floor Vote
Yes: 22 • No: 0
Senate vote • 2/12/2025
The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. The...
Yes: 13 • No: 0
Actions Timeline
Act 025, 04/23/2025 (Gov. Msg. No. 1125).
4/23/2025SenateAct 025, on 04/23/2025 (Gov. Msg. No. 1125).
4/23/2025HousePassed Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Marten excused (2). Transmitted to Senate.
4/8/2025HouseReceived from House (Hse. Com. No. 624).
4/8/2025SenateEnrolled to Governor.
4/8/2025SenateReported from FIN (Stand. Com. Rep. No. 1939), recommending passage on Second Reading and placement on the calendar for Third Reading.
4/4/2025HousePassed Second Reading; placed on the calendar for Third Reading with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Kapela excused (2).
4/4/2025HouseThe committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 13 Ayes: Representative(s) Yamashita, Takenouchi, Grandinetti, Holt, Keohokapu-Lee Loy, Kitagawa, Kusch, Lamosao, Lee, M., Miyake, Morikawa, Templo, Reyes Oda; Ayes with reservations: none; 0 Noes: none; and 3 Excused: Representative(s) Hussey, Alcos, Ward.
3/27/2025HouseBill scheduled to be heard by FIN on Thursday, 03-27-25 2:00PM in House conference room 308 VIA VIDEOCONFERENCE.
3/24/2025HouseReferred to FIN, referral sheet 17
2/28/2025HousePass First Reading
2/27/2025HousePassed Third Reading. Ayes, 22; Aye(s) with reservations: none. Noes, 0 (none). Excused, 3 (Senator(s) Gabbard, Kouchi, Richards). Transmitted to House.
2/19/2025SenateReceived from Senate (Sen. Com. No. 12).
2/19/2025HouseReported from WAM (Stand. Com. Rep. No. 689) with recommendation of passage on Second Reading and placement on the calendar for Third Reading.
2/18/2025SenateReport adopted; Passed Second Reading.
2/18/2025SenateOne Day Notice 02-19-25.
2/18/2025SenateThe committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.
2/12/2025SenateThe committee(s) on WAM has scheduled a public hearing on 02-12-25 10:00AM; Conference Room 211 & Videoconference.
2/7/2025SenateReferred to WAM.
1/27/2025SenateIntroduced and passed First Reading.
1/23/2025SenatePending Introduction.
1/21/2025Senate
Bill Text
Original
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