S.B. 1347 Summary

• Adds new tax credit for qualifying K-12 teachers allowing 80% of qualifying classroom expenses up to $500 per year, applicable to teachers employed by the Department of Education, charter schools, or private schools working at least 900 hours annually.

• Increases standard deduction amounts effective for tax year 2023 and establishes annual cost-of-living adjustments indexed to the Urban Hawaii Consumer Price Index beginning January 1, 2024.

• Increases personal exemption amount from $1,144 to $2,288 for tax year 2023 with annual cost-of-living adjustments thereafter.

• Expands low-income tax credits by increasing adjusted gross income thresholds and credit amounts for dependent care assistance (section 235-55.6), rent tax credit (section 235-55.7), and earned income tax credit (section 235-55.75).

• Increases dollar limits on employment-related expenses from $2,400/$4,800 to $10,000/$20,000 depending on number of qualifying individuals.