S.B. 302 Summary

• Increases income eligibility thresholds and credit amounts for the Hawaii income tax credit for low-income household renters, establishing tiered brackets based on filing status (single, head of household, married filing jointly) and adjusted gross income levels.

• Replaces the previous $30,000 income cap and $50 flat credit per exemption with progressive brackets where credit amounts phase out at higher income levels, with seniors (age 65+) eligible to claim double the credit.

• Requires automatic adjustment of all dollar amounts in the credit table every three years beginning in 2023, using the percentage change in the urban Hawaii consumer price index from June of the prior year compared to June 2021.

• Expands eligibility to include residents with no income or no taxable income, and clarifies that residents who paid more than $1,000 in rent during the taxable year may claim the credit.

• Effective July 1, 2050 for taxable years beginning after December 31, 2020.