HOUSE OF REPRESENTATIVES	H.B. NO.	2525
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII

A BILL FOR AN ACT

relating to taxation.

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

SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235- Police officer retention and housing income tax credit. (a) There shall be allowed to each qualifying taxpayer subject to the tax imposed under this chapter, a police officer retention and housing income tax credit that shall be applied against the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.

(b) The police officer retention and housing income tax credit shall be equal to $10,000.

(c) The director of taxation:

(1) Shall prepare any forms that may be necessary to claim a tax credit under this section;

(2) May require the taxpayer to furnish reasonable information to ascertain the validity of the claim for the tax credit made under this section; and

(3) May adopt rules under chapter 91 as necessary to effectuate the purposes of this section.

(d) If the tax credit claimed by the taxpayer under this section exceeds the amount of the income tax payments due from the taxpayer, the excess of credit over payments due shall be refunded to the taxpayer; provided that the tax credit properly claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer; and provided further that no refunds or payments on account of the tax credit allowed by this section shall be made for amounts less than $1. All claims for the tax credit under this section, including amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

(e) For the purposes of this section, "qualifying taxpayer" means a police officer employed during the taxable year by the police department of a county with a population greater than five hundred thousand."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2025.

INTRODUCED BY:

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Report Title:

Police Officer Retention and Housing Income Tax Credit

Description:

Establishes a refundable income tax credit for the retention and housing of certain police officers.

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