“While we didn’t get everything we wanted in the bill, the Senate recognized that the only way to ensure wage increases this session was to compromise with our House colleagues on the bill’s final language,” Kouchi said in a press release.

HB 2510 also makes the state’s earned income tax credit refundable and permanent, which could put more money back into the pockets of low-income workers. Right now, the state EITC can only be applied to outstanding tax obligations. Any leftovers wouldn’t be sent as a check until after tax filings are completed.

The federal EITC is already refundable. Households earning between $15,000 and $49,999 annually could claim state tax credits of about $425 a year, according to an analysis from the Hawaiʻi Budget & Policy Center.

“Especially with inflation we know families are struggling to pay their bills, so it’s good to know they’ll get this tax credit,” said Nicole Woo, director of research and economic policy for the Hawaiʻi Children’s Action Network.

Gavin Thornton, executive director of the Hawaiʻi Appleseed Center for Law & Economic Justice, called the EITC provision a “win for everybody.”

“The money that struggling working families get from this gets pumped right into our economy,” Thornton said.