HI HB40

Provides an income tax credit to resident individual taxpayers for taxable year 2023, with the credit amount multiplied by the number of qualified exemptions (specific dollar amount left blank in bill).

Requires claimants to have been Hawaii residents for at least nine months and excludes individuals convicted of felonies, those committed to youth correctional facilities, and misdemeanants confined to jail for the full taxable year.

Appropriates unspecified amounts from general revenues for deposit into the other post-employment benefits trust fund and the emergency and budget reserve fund, in accordance with Hawaii Constitution article VII, section 6.

Allows excess tax credits to be refunded to taxpayers or paid to individuals with no tax liability; all claims must be filed within twelve months after the close of the taxable year.

Takes effect July 1, 2050, though tax credit provisions apply to taxable years beginning after December 31, 2022.