Governor Ige signed HB 209, a win for working families and children!

The Hawai‘i Tax Fairness Coalition and Governor Ige at the HB 209 bill signing

On July 10, 2017, Governor David Ige signed HB 209a bill creating a non-refundable state Earned Income Tax Credit (EITC) worth up to 20 percent of the federal EITC. With this new law, Hawai‘i joins 28 other states and D.C. in offering a state-level EITC to help working families keep more of their earnings.

It is estimated that the new tax credit will provide $130 million in tax relief for low-income and working-class families over its first 6 years. Other components of the Hawai‘i Tax Fairness package encompassed by HB 209 are the repeal of the sunset date for improvements to the refundable food/excise tax credit and the reinstatement of higher-income tax brackets that had been repealed in 2015.

Mahalo to the members of the Hawai‘i Tax Fairness Coalition and legislators who have worked for many years to create a state EITC. Though there is still much to be done, this victory brings Hawai‘i closer to a tax system that makes sense.