HI HB2525

Creates a new $10,000 income tax credit called the "Police Officer Retention and Housing Income Tax Credit" under Hawaii Revised Statutes Chapter 235

Qualifying taxpayers are police officers employed by a county police department in a county with population greater than 500,000 (effectively targeting Honolulu)

The tax credit is fully refundable, meaning officers receive the full $10,000 even if they owe less than that amount in state income taxes

Claims must be filed within 12 months after the close of the taxable year; failure to file timely results in waiver of the credit

Takes effect for taxable years beginning after December 31, 2025