HB 959 Summary

• Exempts groceries (SNAP-eligible products) and nonprescription drugs from general excise tax effective for taxable years beginning after December 31, 2024.

• Incrementally increases general excise tax rates from 4% to 6% over four years (2026-2029), with increased revenue deposited to the general fund during fiscal years 2025-2029.

• Removes state income tax on unemployment compensation benefits and excludes the first $100,000 of individual income from taxation for taxable years beginning after December 31, 2025.

• Doubles standard deductions for taxpayers earning less than $100,000 (single) or $200,000 (joint) and increases the income threshold for the low-income household renters' tax credit from $30,000 to $50,000, with credit amount rising from $50 to $500.

• Establishes the Maui Recovery Special Fund to support recovery programs, capital improvements, and assistance to individuals impacted by the 2023 Maui wildfires, with appropriations for fiscal years 2026 and 2027.