HI SB161

Establishes a nonrefundable income tax credit equal to 25% of qualified wages for taxpayers who hire an individual with a disability, limited to the first 12 months of employment.

Caps the total annual tax credit at an amount to be specified (blank in document), with unused credits allowed to carry forward to subsequent years until exhausted.

Requires certification by a qualified physician (Hawaii-licensed, out-of-state licensed, or US military medical officer) before an employee can be treated as having a disability for credit purposes.

Excludes from the credit wages paid to relatives, substantial business owners, estate/trust beneficiaries, and previously employed individuals, and requires recapture of the credit if the employee is terminated within 12 months.

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