HI SB325

Provides a general income tax credit to resident individual taxpayers filing for taxable year 2025, with the credit amount multiplied by the number of qualified exemptions (dollar amount not specified in draft).

Allows resident individuals with no income tax liability to claim and receive refunds for the tax credit; requires all credit claims to be filed within 12 months after the close of the taxable year.

Excludes from tax credit eligibility individuals convicted of felonies with full-year prison confinement, youth committed to correctional facilities for the full year, and misdemeanants confined to jail for the full year.

Appropriates unspecified general fund amounts for fiscal year 2025-2026 to deposit into the emergency and budget reserve fund and the other post-employment benefits trust fund, pursuant to Hawaii Constitution article VII, section 6.

Implements constitutional requirements to dispose of excess general fund revenues through tax credits, emergency fund deposits, or pre-payment of state debt and pension liabilities; effective July 1, 3000 (with section 2 applying to taxable years after December 31, 2024).