HI HB209

Establishes a state earned income tax credit equal to 20% of the federal earned income tax credit claimed on a taxpayer's federal return, available for taxable years beginning after December 31, 2017 through December 31, 2022.

Requires qualifying taxpayers to file both federal and Hawaii income tax returns using the same filing status and claimed dependents to claim the credit, which is nonrefundable but can carry forward to subsequent years if it exceeds tax liability.

Modifies Hawaii income tax brackets for joint filers, heads of household, and single filers effective for taxable years beginning after December 31, 2017, adding new higher income brackets with increased tax rates up to 11% for the highest earners.

Requires the Director of Taxation to prepare claim forms, alert eligible taxpayers to the credit availability, and submit annual reports to the legislature detailing the number of credits granted, total amounts distributed, and average credit values by income ranges.

Removes the December 31, 2017 sunset date for amendments to Hawaii's refundable food and excise tax credit established by Act 223, Session Laws of Hawaii 2015, making those provisions permanent.