HOUSE OF REPRESENTATIVES	H.B. NO.	2779
THIRTY-SECOND LEGISLATURE, 2024		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO TAXATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 235-2.4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Section 63 (with respect to taxable income defined) of the Internal Revenue Code shall be operative for the purposes of this chapter, subject to the following:

(1) Section 63(c)(1)(B) (relating to the additional standard deduction), 63(c)(1)(C) (relating to the real property tax deduction), 63(c)(1)(D) (relating to the disaster loss deduction), 63(c)(1)(E) (relating to the motor vehicle sales tax deduction), 63(c)(4) (relating to inflation adjustments), 63(c)(7) (defining the real property tax deduction), 63(c)(8) (defining the disaster loss deduction), 63(c)(9) (defining the motor vehicle sales tax deduction), and 63(f) (relating to additional amounts for the aged or blind) of the Internal Revenue Code shall not be operative for purposes of this chapter;

(2) Section 63(c)(2) (relating to the basic standard deduction) of the Internal Revenue Code shall be operative, except that the standard deduction amounts provided therein shall instead mean:

(A) $4,400 in the case of:

(i) A joint return as provided by section 235-93; or

(ii) A surviving spouse (as defined in section 2(a) of the Internal Revenue Code);

(B) $3,212 in the case of a head of household (as defined in section 2(b) of the Internal Revenue Code);

(C) $2,200 in the case of an individual who is not married and who is not a surviving spouse or head of household; [or]

(D) $2,200 in the case of a married individual filing a separate return;

(E) For taxable years beginning after December 31, 2026, the standard deduction amounts provided therein shall instead mean:

(i) $10,000 in the case of a joint return as provided by section 235-93 or a surviving spouse (as defined in section 2(a) of the Internal Revenue Code);

(ii) $7,500 in the case of a head of household (as defined in section 2(b) of the Internal Revenue Code);

(iii) $5,000 in the case of an individual who is not married and who is not a surviving spouse or head of household; or

(iv) $5,000 in the case of a married individual filing a separate return;

(F) For taxable years beginning after December 31, 2028, the standard deduction amounts provided therein shall instead mean:

(i) $16,000 in the case of a joint return as provided by section 235-93 or a surviving spouse (as defined in section 2(a) of the Internal Revenue Code);

(ii) $12,000 in the case of a head of household (as defined in section 2(b) of the Internal Revenue Code);

(iii) $8,000 in the case of an individual who is not married and who is not a surviving spouse or head of household; or

(iv) $8,000 in the case of a married individual filing a separate return;

(G) For taxable years beginning after December 31, 2030, the standard deduction amounts provided therein shall instead mean:

(i) $18,000 in the case of a joint return as provided by section 235-93 or a surviving spouse (as defined in section 2(a) of the Internal Revenue Code);

(ii) $13,500 in the case of a head of household (as defined in section 2(b) of the Internal Revenue Code);

(iii) $9,000 in the case of an individual who is not married and who is not a surviving spouse or head of household; or

(iv) $9,000 in the case of a married individual filing a separate return;

(H) For taxable years beginning after December 31, 2032, the standard deduction amounts provided therein shall instead mean:

(i) $20,000 in the case of a joint return as provided by section 235-93 or a surviving spouse (as defined in section 2(a) of the Internal Revenue Code);

(ii) $15,000 in the case of a head of household (as defined in section 2(b) of the Internal Revenue Code);

(iii) $10,000 in the case of an individual who is not married and who is not a surviving spouse or head of household; or

(iv) $10,000 in the case of a married individual filing a separate return; and

(I) For taxable years beginning after December 31, 2033, the standard deduction amounts provided therein shall instead mean:

(i) $24,000 in the case of a joint return as provided by section 235-93 or a surviving spouse (as defined in section 2(a) of the Internal Revenue Code);

(ii) $18,000 in the case of a head of household (as defined in section 2(b) of the Internal Revenue Code);

(iii) $12,000 in the case of an individual who is not married and who is not a surviving spouse or head of household; or

(iv) $12,000 in the case of a married individual filing a separate return;

(3) Section 63(c)(5) (limiting the basic standard deduction in the case of certain dependents) of the Internal Revenue Code shall be operative, except that the limitation shall be the greater of $500 or the individual's earned income; and

(4) The standard deduction amount for nonresidents shall be calculated pursuant to section 235-5."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 3000, and shall apply to taxable years beginning after December 31, 2026.

Report Title:

Income Tax; Taxation; Standard Deduction; Incremental Increase

Description:

Incrementally increases the amount of the income tax standard deduction for taxable years beginning after December 31, 2023, through taxable years beginning after December 31, 2033. Effective 7/1/3000. (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.