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Bill Summary · SB 1013

Legislative bill overview

SB 1013 modifies Hawaii's Earned Income Tax Credit (EITC) program, which provides tax relief to low and moderate-income working individuals and families. The bill was introduced in January 2025 but has not yet advanced beyond initial committee referral, having been carried over to the 2026 legislative session for further consideration.

Why is this important

The EITC is a major anti-poverty tool that supplements wages for working families below certain income thresholds. Changes to Hawaii's EITC—whether expanding eligibility, increasing credit amounts, or adjusting income limits—directly affect household finances for thousands of working residents and state tax revenue.

Potential points of contention

  • Cost to state budget: Expanding or enhancing the EITC increases foregone tax revenue, requiring either spending cuts elsewhere or tax increases to offset the fiscal impact
  • Income threshold and eligibility design: Determining who qualifies and at what income levels involves trade-offs between broader coverage versus targeted assistance
  • Implementation complexity: Changes to the EITC require coordination with tax administration systems and clear guidance to taxpayers and preparers

Compiled from official sources — confirm details with the bill’s official record.

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