HI HB1160

Requires refundable income tax credits to be paid to individual taxpayers via debit card rather than cash or check, effective for taxable years beginning after December 31, 2010.

Debit cards issued at no charge to taxpayers and limited to purchases of goods or services within Hawaii from persons licensed under chapter 237 (general excise tax).

Designated executive department administers debit card program, maintains individual accounts in tax reserve fund, processes payments to sellers, and may contract with private providers or charge transaction fees to sellers.

Allows replacement of damaged, lost, or stolen debit cards with unused balance transferred to new card.

Temporary measure set to expire and be repealed on December 31, 2012, with prior tax refund law restored.