HB 131 Summary

• Increases the income tax credit for low-income household renters by establishing tiered brackets based on filing status (single, head of household, joint) with credit amounts of $100-$200 per exemption instead of the previous flat $50 credit.

• Raises adjusted gross income eligibility thresholds, with caps ranging from $40,000 for single filers to $80,000 for joint filers, compared to the previous $30,000 cap for all taxpayers.

• Mandates automatic adjustments to all dollar amounts in the tax credit table every three years beginning in 2022, using the urban Hawaii consumer price index compared to June 2021 levels.

• Adds definition of "consumer price index" and makes technical updates to statutory language throughout the section.

• Applies to taxable years beginning after December 31, 2020, with an effective date of July 1, 2050.