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Bill

SB 704

RELATING TO THE EARNED INCOME TAX CREDIT.

2025 Regular Session Introduced by Henry Aquino and 7 co-sponsors

Hawaii SB 704 modifies the state's Earned Income Tax Credit, potentially affecting tax relief for low-to-moderate income working families and state budget expenditures.

Carried over to 2026 Regular Session.
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Bill Summary · SB 704

Legislative bill overview

SB 704 relates to modifications of Hawaii's Earned Income Tax Credit (EITC), though the specific changes are not detailed in the provided bill summary. The EITC is a tax benefit for low-to-moderate income working individuals and families. The bill was introduced in the 2025 session and carried over to 2026 for continued consideration.

Why is this important

The EITC is one of the largest anti-poverty programs in the United States, directly affecting household finances for working families. Changes to Hawaii's EITC could expand or reduce tax relief for approximately 140,000+ eligible Hawaii households, impacting disposable income and economic security for low-wage workers.

Potential points of contention

  • Fiscal impact: Expanding the EITC increases state revenue costs, while restrictive changes may face opposition from anti-poverty advocates
  • Eligibility criteria: Debates often center on income thresholds, family structure definitions, and work requirements
  • Administrative complexity: Changes to credit calculations or application processes affect both taxpayers and the Department of Taxation's implementation burden

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

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