New policy brief proposes targeted tax relief for struggling Hawaiʻi families

Act 046, introduced in 2024 by Gov. Josh Green through his Green Affordability Plan, is legislation aimed at providing tax relief to Hawaiʻi residents. However, the Hawaiʻi Appleseed Center for Law & Economic Justice claims that during the course of the 2024 legislative session, the governor’s proposal was “radically altered by lawmakers behind closed doors during the conference committee phase.” Hawaiʻi Appleseed is proposing tax credits that target assistance only to Hawaiʻi’s struggling families.

“While the final bill still provided tax relief, these closed-door changes shifted the bulk of the benefits up the income scale to middle- and high-income earners,” said Devin Thomas, Hawaiʻi Appleseed senior policy analyst for taxes and budget. “The result is a policy that mostly helps families that don’t need the assistance, while leaving behind the families struggling to survive with low wage jobs, and most in danger of homelessness or being priced out of Hawaiʻi.”

Hawaiʻi Appleseed’s latest policy brief explores two tax credit strategies aimed at providing relief to local families struggling with the high cost of living, particularly those with children. It claims these families are most affected by Hawaiʻi’s financial challenges, and the brief highlights how Act 046, introduced in 2024, disproportionately benefits middle- and high-income earners.