HI HB2596

Clarifies the priority for claiming income tax credits by requiring individuals with no income tax liability to claim refundable tax credits before non-refundable tax credits.

Establishes a statutory framework for the order in which income tax credits must be claimed, which currently lacks clear guidelines.

Estimated to save the State of Hawaii $17,000,000 over at least two years by preventing inefficient credit claim ordering.

Creates budgeting certainty for the State's tax credit liabilities and reduces unpredictable tax expenditures.

Supported by the Department of Taxation and recommended for passage by the Senate Committee on Ways and Means.