HB 1652 Summary

• Establishes a state income tax credit for eligible school employees to offset personal expenditures on classroom supplies and materials.

• Eligible taxpayers include employees of the Department of Education, public charter schools, Hawaii State Public Library System, and head start programs working as teachers, instructors, librarians, counselors, principals, registrars, aides, or special education teachers.

• Qualified expenses include books, supplies (excluding athletic supplies for PE/health), computer equipment with software and services, and supplementary classroom materials.

• Tax credit amount equals expenses incurred with a maximum cap per taxable year (specific amount not filled in bill text); unused credits may be carried forward to subsequent years.

• Effective July 1, 3000, and applies to taxable years beginning after December 31, 2023.