HI HB2406

Converts the state earned income tax credit from nonrefundable to refundable, allowing taxpayers with no income tax liability or excess credits to receive refunds from the state.

Requires refunds of $1 or more when the earned income tax credit exceeds income tax payments due; credits less than $1 are not refunded.

Allows nonrefundable earned income tax credits claimed for taxable years beginning after December 31, 2017, that exceeded tax liability to be carried forward as credits against future net income tax liability until exhausted, but only through the 2022 tax year.

Applies to taxable years beginning after December 31, 2021.