HI HB726

Establishes a $500 maximum annual state income tax credit for eligible prekindergarten through twelfth-grade teachers, instructors, school librarians, counselors, principals, registrars, and aides employed at least 900 hours during a school year.

Eligible expenses include books, supplies (excluding athletic supplies), computer equipment with related software and services, and supplementary classroom materials purchased by qualifying educators.

Unused tax credits exceeding a taxpayer's net income tax liability may be carried forward to subsequent tax years until exhausted, with all claims required to be filed within 12 months of the close of the taxable year.

Prohibits claiming any other tax credit under state income tax law for the same expenses used to claim this teacher tax credit.

Takes effect July 1, 2050 and applies to taxable years beginning after December 31, 2019.