HI HB670

Creates a refundable Hawaii Working Family Tax Credit equal to 10 percent of the federal earned income tax credit claimed on a taxpayer's federal return.

Applies to resident individual taxpayers who file Hawaii income tax returns and are not claimed as dependents, with adjustments for nonresident taxpayers based on income sourced to Hawaii.

Requires taxpayers to use the same filing status on Hawaii returns as on federal returns and to claim credits within 12 months following the close of the taxable year.

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

Directs the Director of Taxation to prepare forms, notify eligible taxpayers, and submit annual reports to the legislature containing the number of credits granted, total amount distributed, and average credit value by income range.

Takes effect July 1, 2030, and applies to taxable years beginning after December 31, 2016.