Working families win with EITC expansion

This year, our state legislators took a significant step forward in making good on the promise of a happy, healthy, and economically stable life in the islands by expanding the state level earned income tax credit or EITC.

Created in 2017, this state tax credit provides an additional percentage of the federal EITC as targeted, direct economic relief to working families.

With the passage of House Bill 954, the state will increase the value of its state EITC from 20 percent of the federal EITC to 40 percent. This gives Hawaiʻi one of the strongest state level EITCs in the nation, behind only California, Maryland, and Washington, D.C.

With this expanded credit, Hawaiʻi will now be a national leader in providing economic relief to the low and moderate-income working families that need it most.