The State is still on the hook for more than $75 million from expired tax credits

Dec 14, 2022 | Tax Research Insights

There are two kind of tax credits that taxpayer can claim: the refundable and the nonrefundable credit. For the refundable tax credit, the taxpayer receives the full amount of tax credit in the form of either a reduction of tax liability, a refund, or both. For the...

New Departmental Tax Initiatives Significantly Reduced GET Exemptions in 2021, Saving the Hawaii Taxpayers an Estimated $196.5 Million

Dec 13, 2022 | Tax Research Insights

There was a big drop in the General Excise & Use Tax (GET) exemptions claimed in 2021. Figure 1 from the 2021 GET Exemptions Report presents the amount of gross receipts and GET exemptions claimed by Hawaii taxpayers since 2018. Figure 1GET Exemptions and Gross...

Covid-19 reduced the usage of the Child Care Tax Credit

Nov 25, 2022 | Tax Research Insights

A resident taxpayer may qualify for a tax credit that offsets some of the cost of childcare. The tax credit is called the Tax Credit for Child and Dependent Care Expenses. The credit is normally the third most commonly claimed tax credit, but it fell to fourth place...

More people claimed the Refundable Food/Excise Tax Credit during the 2020 Pandemic

Nov 3, 2022 | Tax Research Insights

Hawaii has several tax credits that promote social welfare. More people claimed these credits during the Covid-19 pandemic, supporting the idea that these credits provide important economic support when Hawaii’s families are hurting the most. More Hawaii taxpayers...

What would recession do to Hawaii’s Tax Revenues?

Jun 27, 2022 | Tax Research Insights

There has been significant talk of a recession in the financial press. High levels of inflation have prompted the Federal Reserve (Fed) to take decisive action by raising the benchmark interest rates. Will the abrupt change in monetary policy cause a recession? And if...