HI HB2510

Creates a new income tax credit for employers who provide paid family and medical leave to employees, equal to 35% of wages paid during leave periods, up to $4,000 per employee annually.

Qualified employees must have worked for the employer for at least 12 consecutive months, with leave claimable for up to 12 weeks in a 12-month period.

Family and medical leave covers serious health conditions preventing work, birth or adoption of a child, or caring for a child, spouse, or parent with a serious health condition.

Employers must provide full-time employees at least two weeks of paid leave annually and adopt policies protecting employees from discrimination or retaliation for using leave.

Unused tax credits may carry forward to subsequent tax years, and the credit applies to taxable years beginning after December 31, 2025.