HB 233 Summary

• Establishes a nonrefundable state child tax credit for qualifying individual taxpayers with adjusted gross income of $60,000 or less (specific credit amounts per child left blank in bill text)

• Provides different credit levels for children aged five years or less versus children aged six to seventeen years

• Credits can be claimed against net income tax liability, with excess credits carrying forward to subsequent taxable years until exhausted

• Applies to taxpayers who claim the federal child tax credit under Internal Revenue Code Section 24 and file Hawaii returns using the same filing status and dependents as their federal returns

• Requires the Director of Taxation to prepare forms, alert eligible taxpayers, and submit annual reports on credit usage to the governor and legislature; effective for taxable years beginning after December 31, 2023