SB 1347 Summary

• Adds new tax credit for qualifying K-12 teachers allowing 80% of qualifying classroom expenses (books, supplies, equipment) up to $500 per year, with unused credits carrying forward to future years.

• Increases Hawaii's income tax standard deduction amounts effective for taxable years beginning after December 31, 2022 (joint filers: $10,000; head of household: $7,500; single filers: $5,000).

• Establishes annual cost-of-living adjustments to income tax brackets, standard deduction amounts, and personal exemption amounts beginning January 1, 2024, based on Urban Hawaii Consumer Price Index.

• Increases personal exemption amount from $1,144 to $2,288 and enhances multiple low-income tax credits including child/dependent care credit (increased limits from $2,400-$4,800 to $10,000-$20,000), earned income tax credit (increased from 20% to 30% of federal credit), and rent tax credit.

• Applies to taxable years beginning after December 31, 2022.