HI HB1147

Clarifies that nonresidents claiming the state refundable earned income tax credit must adjust the credit amount by multiplying it by the ratio of Hawaii adjusted gross income to federal adjusted gross income.

Expands the definition of "qualifying individual taxpayer" to explicitly include nonresidents, in addition to residents, who claim the federal earned income tax credit under Internal Revenue Code Section 32.

Eliminates the unlimited carryforward of nonrefundable earned income tax credits claimed for taxable years beginning after December 31, 2021, by requiring such credits to be exhausted by December 31, 2025.

Maintains the 40 percent state earned income tax credit equal to 40 percent of the federal earned income tax credit allowed and claimed on the federal income tax return.

Effective July 1, 3000, applying to taxable years beginning after December 31, 2024, with a provision that amendments are not repealed when the statute is reenacted on December 31, 2027.