H.B. 526 - Income Tax Credit for Hiring Individuals with Disabilities

• Creates an income tax credit for employers who hire individuals with disabilities, equal to 50% of qualified wages paid during the first six months of employment.

• Annual credit limit per taxpayer is left blank in the bill (amount not specified), with unused credits allowed to carry forward to subsequent years.

• Requires certification by a qualified physician (Hawaii-licensed, out-of-state licensed, or U.S. military medical officer) before the individual begins work.

• Excludes wages paid to relatives of the taxpayer, dependent family members, and individuals previously employed by the employer from the credit calculation.

• Requires credit claims to be filed within 12 months following the taxable year; failure to do so constitutes waiver of the credit right.

• Applies to taxable years beginning after December 31, 2018.