HI SB597

Excludes income from deferred compensation retirement plans (401(k), 403(b), IRAs, and similar plans) from Hawaii state income tax for eligible taxpayers.

Applies only to taxpayers whose federal adjusted gross income is below specified thresholds: $30,000 (single/married filing separately), $45,000 (head of household), or $60,000 (joint/surviving spouse).

Amends Hawaii Revised Statutes Section 235-7(a) by adding a new exclusion category (13) for deferred compensation retirement plan income.

Applies to taxable years beginning after December 31, 2022, addressing concerns about retirement income inequity and financial hardship for Hawaii seniors.

Takes effect January 1, 2050 for general provisions, but the income tax exclusion applies immediately to taxable years starting in 2023.