S.B. 55 Summary

• Increases income eligibility thresholds and credit amounts for Hawaii's tax credit for low-income household renters, which has not been substantially adjusted since 1989 despite 390% increase in housing costs since that time.

• Establishes tiered tax credit structure based on adjusted gross income with different brackets for single filers, head of household, and joint filers; credit amounts range from $0 to $200 per exemption depending on income level.

• Implements annual automatic adjustments to income thresholds and credit amounts based on Consumer Price Index changes, calculated using July-to-July percentage changes in the Consumer Price Index for All Urban Consumers.

• Allows taxpayers age 65 and over to claim double the tax credit; permits individuals with no tax liability to receive credit payments rather than only offsets against taxes owed.

• Effective July 1, 2050, and applies to taxable years beginning after December 31, 2022.