HI SB98

Amends the low-income tax credit (formerly called the refundable food/excise tax credit) under Section 235-55.85, Hawaii Revised Statutes.

Establishes new income thresholds and credit amounts: single filers with adjusted gross income under $15,000 receive $300 per exemption, $15,000-$24,999 receive $150 per exemption, and $25,000+ receive $0; non-single filers receive $300 under $15,000, $150 for $15,000-$24,999, $100 for $25,000-$49,999, and $0 for $50,000+.

Changes the credit from refundable to nonrefundable, meaning excess credits cannot be refunded to taxpayers or carried forward to future years.

Removes provisions allowing individuals with no income tax liability to receive credit payments and eliminates the $1 minimum threshold for refunds.

Takes effect July 1, 2030, and applies to taxable years beginning after December 31, 2012.