Hawaii Limits Carryforward of Earned Income Tax Credit

The Hawaii Governor signed a law concerning the earned income tax credit. The law includes: 1) providing that nonresidents claiming the refundable earned income tax credit must adjust the amount claimed using the ratio of their Hawaii adjusted gross income to federal adjusted gross income; and 2) providing that no nonrefundable earned income tax credits claimed for taxable years beginning after Dec. 31, 2021, and carried forward, can be used as a credit for taxable years beginning after Dec. 31. The law applies to taxable years beginning after Dec. 31, 2024. [S.B. 1466, enacted 04/23/25]

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