HI HB2510

Makes the state earned income tax credit refundable and permanent, allowing taxpayers with excess credits to receive refunds instead of only carrying forward unused credits.

Allows carryforward of nonrefundable earned income tax credits claimed in taxable years 2018-2021 until exhausted, with no credits usable after December 31, 2024.

Incrementally increases minimum wage beginning October 1, 2022: $12.00/hour (Oct 1, 2022), $14.00/hour (Jan 1, 2024), $16.00/hour (Jan 1, 2026), and $18.00/hour (Jan 1, 2028).

Increases tipped employee minimum wage to $1.00/hour (Oct 1, 2022), $1.25/hour (Jan 1, 2024), and $1.50/hour (Jan 1, 2028).

Requires the director of taxation to prepare forms, alert eligible taxpayers, and submit annual reports on the earned income tax credit program to the legislature and governor.