HB 1513 Summary

• Increases the income tax credit for low-income household renters by establishing tiered tax brackets that phase out the credit as income rises, replacing the previous flat $50 credit structure.

• Raises income eligibility thresholds for the credit, with different limits based on filing status: single/married filing separately up to $40,000, heads of household up to $60,000, and joint filers up to $80,000.

• Sets credit amounts at $200 for the lowest income bracket, $150 for the middle bracket, and $100 for the upper bracket, with $0 credit above the maximum income threshold for each filing status.

• Requires automatic inflation adjustments every three years beginning in taxable year 2024, using the urban Hawaii consumer price index to adjust dollar amounts in the tax credit tables.

• Allows taxpayers age 65 and older to claim double the applicable tax credit and permits refunds or payments for allowed credits exceeding tax liability.