HI HB128

Establishes a new college savings program tax credit under Chapter 235 of Hawaii Revised Statutes for contributions made on or after January 1, 2017, to accounts in the state's college savings program under Chapter 256.

Credits are calculated as 10% of contributions with different limits based on filing status: $5,000 for joint filers ($500 max credit), $2,500 for single filers ($500 max credit), and $3,750 for head of household filers ($500 max credit).

Allows credits for rollover distributions from college savings programs in other states and prohibits credits when a designated beneficiary's account value equals or exceeds the maximum investment level.

Requires taxpayers to repay the full amount of credits claimed if they cancel a tuition savings agreement or make nonqualified withdrawals from the account.

Permits unused credits to be carried forward to subsequent taxable years until exhausted and establishes a twelve-month deadline for filing or amending credit claims.