HI SB553

Establishes a low-income tax credit that reduces state income tax liability by 50% for taxpayers with federal adjusted gross income at or below 125% of federal poverty guidelines.

Completely eliminates income tax liability for taxpayers with income at or below the federal poverty guidelines.

Applies a 50% tax credit reduction for taxpayers with income between 100% and 125% of federal poverty guidelines.

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

Applies to taxable years beginning after December 31, 2015.