HB729 Summary

• Establishes a refundable state earned income tax credit equal to a percentage of the federal earned income tax credit under Internal Revenue Code Section 32 for eligible resident individuals filing Hawaii income tax returns.

• Requires the Department of Human Services to offer financial education to applicants for and recipients of Temporary Assistance for Needy Families, covering consumer finance, budgeting, savings, and investing concepts.

• Appropriates unspecified sums for fiscal years 2011-2012 and 2012-2013 to fund financial education programs and individual development account programs operated by fiduciary organizations.

• Amends individual development account program provisions to increase fiduciary organization operational cost allowances from 10 percent to 25 percent of state funds and authorizes the department to provide technical assistance to fiduciary organizations.

• Takes effect January 1, 2012, with the earned income tax credit applying to taxable years beginning after December 31, 2010.