HI HB1022

Increases Hawaii's minimum wage incrementally from $11.00 per hour on January 1, 2020 to $15.00 per hour on January 1, 2024 (current rate is $10.10 as of January 1, 2018).

Creates a new income tax credit for qualified small businesses to offset increased minimum wage costs, providing $1 credit per minimum wage hour paid above $10.10 per hour, capped at $50,000 per taxable year.

Defines "qualified small business" as having 50 or fewer employees, no more than $4,000,000 gross income, and maintaining at least equal minimum wage hours compared to the year before the increase took effect.

Allows the tax credit to be claimed for the taxable year in which a minimum wage increase becomes effective and for the following two taxable years, with unused credits carrying forward to subsequent years.

Exempts employers paying minimum wage pursuant to section 387-2(b) from claiming the tax credit and requires the director of taxation to establish forms and rules to administer the credit program.