HB 1160 Summary

• Requires refundable tax credit refunds to be issued as debit cards rather than cash warrants for individual income taxpayers in Hawaii.

• Debit cards must be valid only for purchasing goods or services within Hawaii from persons licensed under chapter 237 (general excise tax law), with a cash limit equal to the refund amount.

• Designated executive department maintains accounts in the tax reserve fund, processes payments to sellers, and may contract with private administrators; transaction fees may be charged to sellers to cover program costs.

• Allows replacement of lost, stolen, or damaged cards with unused balance transferred to new card after canceling the original account.

• Effective for taxable years beginning after December 31, 2010, with automatic repeal on December 31, 2012.