HI HB2541

Adds a new tax credit section to Hawaii Revised Statutes Chapter 235 for qualified small businesses to offset increases in minimum wage obligations for employees paid above $10.10 per hour.

Credit amount equals $1 per minimum wage hour paid to employees during the taxable year, with a maximum annual credit of $50,000 per qualified small business.

Defines qualified small business as having 25 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 minimum wage increase took effect.

Excess credits may be carried forward to subsequent taxable years until exhausted, and the credit is available for the taxable year the minimum wage increase becomes effective and the following four taxable years.

Credit applies for taxable years beginning after December 31, 2020, and does not apply to employers paying minimum wage pursuant to section 387-2(b).