HB 398 Summary

• Establishes a refundable job creation income tax credit allowing employers to claim $3,000 per new full-time employee hired in a qualified employment position for up to three consecutive years ($3,000 in year one, $3,000 in year two, and $3,000 in year three of continuous employment).

• Requires taxpayers to make capital investments of at least $50,000 and hire at least one new full-time employee per business location to qualify for the credit.

• Defines "new full-time employee" as a person hired within the fiscal year who receives compensation at or above the self-sufficiency income standard and works at least 1,750 hours per year in permanent employment primarily located in Hawaii, excluding previously employed workers whose positions were eliminated and later rehired.

• Requires taxpayers to submit certified statements to the Department of Taxation by March 31 each year identifying capital investments, number of new full-time employees hired, and tax credits claimed; department must verify investments and certify credit amounts.

• Excess tax credits over tax payments due shall be refunded to the taxpayer; credits must be claimed within twelve months following the close of the taxable year or are waived.