HI HB1806

Creates a low-income tax credit that reduces a taxpayer's state income tax liability by 50% for taxable years beginning after December 31, 2014.

Eliminates income tax liability entirely for taxpayers with federal adjusted gross income at or below the federal poverty guidelines.

Applies the 50% credit reduction to taxpayers with federal adjusted gross income between 100% and 125% of the federal poverty guidelines.

Denies the tax credit to taxpayers with federal adjusted gross income at or above 125% of the federal poverty guidelines.

Requires tax credit claims to be filed within 12 months following the close of the taxable year, with failure to comply constituting a waiver of the credit.