H.B. 399 - Work-Based Learning Tax Credit

• Establishes a nonrefundable income tax credit for employers offering positions to qualified interns in department of education or University of Hawaii-approved work-based learning programs for taxable years beginning after January 1, 2024 but before January 1, 2025.

• Credit equals fifty hours of value of salaries, wages, or remuneration paid to qualified interns, capped at 5,250 qualified interns per calendar year.

• Qualified interns must be enrolled in a DOE school, public charter school, or University of Hawaii campus and earn at least $12.00 per hour for at least 150 hours of work (maximum 15 hours weekly during school year, 40 hours weekly during breaks).

• Employers must submit applications to the Department of Taxation certifying the intern would not have been hired without the credit and that intern hours will increase compared to the prior year.

• Unused credits may be carried forward for seven taxable years following the year claimed, and the Department of Taxation must report to the legislature in 2025 and 2026 on credit utilization and effectiveness.