S.B. 801 Summary

• Establishes a qualified internship income tax credit for employers who hire qualified interns enrolled in Department of Education schools or public charter schools, with the credit equal to 50 hours of wages per intern up to a specified maximum per taxpayer annually.

• Requires qualified interns to be paid at least $12.00 per hour, work at least 150 hours total, work no more than 15 hours weekly during the academic year and 40 hours weekly during holidays, and not have been employed by the employer within the six months before the internship begins.

• Mandates that internships meet Department of Education or University of Hawaii work-based learning program requirements and establishes an application and certification process administered by the Department of Labor and Industrial Relations.

• Limits combined tax credits to 50% of taxpayer's tax liability with an annual statewide cap on total credits issued; taxpayers denied credits due to annual cap may claim in subsequent years.

• Appropriates funds for fiscal years 2023-2024 and 2024-2025 and requires reports to the legislature from both the Department of Labor and Industrial Relations and Department of Taxation on program effectiveness and administration; effective January 1, 2050 for tax purposes.