S.B. 1466 Summary

• Clarifies that nonresidents claiming the 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.

• Extends the earned income tax credit provisions to nonresidents in addition to part-year residents under Section 235-55.75 of the Hawaii Revised Statutes.

• Adds a deadline of December 31, 2025, after which nonrefundable earned income tax credits claimed for taxable years beginning after December 31, 2021, cannot be carried forward as credits.

• Applies to taxable years beginning after December 31, 2024, with an exception ensuring amendments to Section 235-55.75(a) survive the statutory sunset and reenactment scheduled for December 31, 2027.