H.B. 81 - Telework Tax Credit Summary

• Establishes a telework tax credit for small business employers in Hawaii to encourage allowing employees to work remotely, applicable to taxable years beginning after December 31, 2024.

• Credits are available to qualified taxpayers (small businesses) that allow at least 30% of their workforce to telework, with the credit amount set per qualifying employee up to a maximum amount (specific dollar amounts left blank in bill).

• "Small business" defined as a for-profit entity domiciled and independently operated in Hawaii with fewer than 100 full-time or part-time employees.

• "Qualifying employees" are those allowed to telework at least two-thirds of the time they are expected to work.

• Unused credits may be carried forward to subsequent years until exhausted, with all claims required to be filed within 12 months following the close of the taxable year or the right to claim is waived.