On July 10, 2017, Governor David Ige signed House Bill 209, a bill creating a non-refundable state Earned Income Tax Credit (EITC) worth up to 20 percent of the federal EITC. With this new law, Hawaiʻi joins 28 other states and Washington 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 six years. Other components of the Hawaiʻi Tax Fairness package encompassed by HB209 include the repeal of the sunset date for improvements to the refundable food/excise tax credit and the reinstatement of higher-income tax brackets on wealthy earners that had been repealed in 2015.

Mahalo to the members of the Hawaiʻi 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 Hawaiʻi closer to a tax system and economy that works for working families.