SB 2165 Summary

• Increases the low-income household renters tax credit amount from $50 to tiered credits ranging from $100-$200 per qualified exemption, depending on federal adjusted gross income brackets that vary by filing status.

• Expands income eligibility thresholds for the tax credit, with caps ranging from $40,000-$80,000 depending on filing status (previously capped at $30,000 for all filers).

• Establishes automatic inflation adjustments every three years beginning in 2024, using the urban Hawaii consumer price index to increase all dollar amounts in the tax credit brackets.

• Adds definition of "consumer price index" as the urban Hawaii consumer price index for all urban consumers published by the U.S. Department of Labor.

• Effective July 1, 2050, and applies to taxable years beginning after December 31, 2021.