HI SB301

Establishes a state earned income tax credit for Hawaii resident individual taxpayers equal to a percentage of the federal earned income tax credit claimed on their federal income tax return.

Requires taxpayer to file an individual income tax return and not be claimed as a dependent by another taxpayer; allows unused credits to carry forward to subsequent tax years.

Provides adjusted credit calculation for part-year residents based on the ratio of Hawaii-attributed adjusted gross income to total adjusted gross income.

Imposes a 10-year disallowance period for fraudulent credit claims and a 2-year disallowance period for claims involving reckless or intentional disregard of tax rules.

Requires the Director of Taxation to prepare necessary forms, alert eligible taxpayers, and submit annual reports to the legislature and governor detailing number of credits granted, total amount, and average credit value by income range; effective July 1, 2050 for taxable years beginning after December 31, 2014.