HI HB25

Exempts income received as unemployment compensation benefits under Hawaii Revised Statutes chapter 383 from state income taxation by adding it to the list of excluded income under Section 235-7(a).

Removes the requirement that individuals filing for unemployment compensation be advised that benefits are subject to state income tax, amending Section 383-163.6(a)(1) to reference only federal income tax.

Maintains notification requirements that unemployment compensation remains subject to federal income tax and that individuals may elect federal income tax withholding or withholding for other states and localities.

Takes effect retroactively to January 1, 2021 upon approval.