HI HB694

Establishes a refundable state child tax credit for qualifying individual taxpayers with dependent children under age 18.

Credit amount ranges from $0 to $650 per dependent based on adjusted gross income, with higher credits for lower-income families (up to $650 for incomes under $40,000 and phasing down to $0 for incomes of $115,000 or more).

Credit is fully refundable, meaning taxpayers can receive the full credit amount even if they have no income tax liability, with no refunds issued for amounts less than $1.

Requires taxpayers to file a federal income tax return claiming the federal child tax credit and file a Hawaii income tax return using the same filing status and claiming the same dependents as their federal return.

Applies to taxable years beginning after December 31, 2025, with claims required to be filed within 12 months following the close of the taxable year.