H.B. 399 Summary

• Establishes a nonrefundable income tax credit for employers who provide work-based learning positions to qualified interns for taxable years beginning after January 1, 2024, but before January 1, 2025.

• Credit equals fifty hours of wages paid to each qualified intern, with a maximum of 5,250 qualified interns allowed per calendar year.

• Qualified interns must be enrolled in a Hawaii Department of Education school, public charter school, or University of Hawaii campus; earn at least $12.00 per hour; work a minimum of 150 hours with no more than 15 hours weekly during school year and 40 hours weekly during breaks.

• Employers must submit applications to the Department of Taxation for initial approval, certifying the intern positions are part of Department of Education or University of Hawaii-approved work-based learning programs and that employment would not occur without the tax credit.

• Department of Taxation must report to the governor and legislature before the 2025 and 2026 sessions on total tax credits allowed, number of interns served, and analysis of the credit's effectiveness as an employment incentive.