HI HB1807

Establishes a refundable state Earned Income Tax Credit equal to 10% of the federal earned income tax credit for eligible resident individual taxpayers.

Requires taxpayers to file an individual income tax return and not be claimed as a dependent by another taxpayer to qualify for the credit.

Allows non-resident individual taxpayers to claim a proportional credit based on the ratio of income attributed to Hawaii to their total adjusted gross income.

Imposes a $100 penalty per failure on tax return preparers who fail to comply with federal due diligence requirements for determining credit eligibility.

Requires the Director of Taxation to prepare necessary forms, alert eligible taxpayers, and submit annual reports to the legislature, governor, and public on credit usage statistics; applies to taxable years beginning after December 31, 2014.