HI HB574

Establishes a $3,000 income tax credit for retired service members of the Hawaii National Guard who file a Hawaii individual income tax return.

Limits the credit to taxpayers with adjusted gross income less than $77,950 and who have separated from the Hawaii National Guard before the end of the taxable year.

Requires retirees to meet one of three criteria: at least 20 years of service in Hawaii National Guard, a 100 percent service-connected disability rating for total and permanent disability, or eligibility for a pension or retirement pay from Hawaii National Guard service.

Disqualifies taxpayers who exclude military pension compensation from taxation under section 235-7 from claiming this credit.

Applies to taxable years beginning after December 31, 2025.