Raises the low-income refundable tax credit. (HB2835 HD1)

A BILL FOR AN ACT

SECTION 1. Section 235-55.85, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Each resident individual taxpayer may claim a refundable low-income tax credit multiplied by the number of qualified exemptions to which the taxpayer is entitled in accordance with the table below; provided that a husband and wife filing separate tax returns for a taxable year for which a joint return could have been filed by them shall claim only the tax credit to which they would have been entitled had a joint return been filed.

Adjusted gross income Credit per exemption

Under $10,000 [$35] $75

$10,000 under $15,000 [25] 50

$15,000 under $20,000 [10] 20

Over [$20,000] $25,000 0"

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2020; provided that it shall apply to taxable years beginning after December 31, 2005.