HONOLULU — A bill that would raise the amount of income tax credit for low-income household renters and provide for periodic increases cleared the Senate Committee on Housing on Tuesday.
What You Need To Know
Senate Bill 55 would adjust the eligibility requirements for the income tax credit for low-income household renters; target the tax credit for lower-income taxpayers by creating tax brackets that will phase out the credit as the taxpayer’s income rises; and provide for adjustments every three years
The credit amount has not changed since 1981, and the income eligibility threshold was last adjusted in 1989
In written testimony, the Office of Hawaiian Affairs registered its support of the measure, noting that more than 15% of Native Hawaiians live below the poverty level and 43% do not own a home
Thomas Yamachika, president of the Tax Foundation of Hawaii, said he appreciated the intent of the measure but was concerned that making the credit more complex would discourage those who need it most from using it
Senate Bill 55, introduced by committee member Sen. Karl Rhoads, would adjust the eligibility requirements for the income tax credit for low-income household renters; target the tax credit for lower-income taxpayers by creating tax brackets that will phase out the credit as the taxpayer’s income rises; and provide for adjustments every three years.
