(BIVN) – On Wednesday, Governor David Ige signed two bills into law relating to tax refunds and the minimum wage.
Governor Ige signed House Bill 2510, now Act 114, and Senate Bill 514, now Act 115, during an event inside the Governor’s Ceremonial Room at the Hawai‘i State Capitol. From the description of the bills:
- HB2510 HD2 SD1 CD1 – Makes the state earned income tax credit refundable and permanent. Provides for carryforward of nonrefundable credits previously claimed. Incrementally increases the minimum wage and tip credit beginning on 10/1/2022. (CD1)
- SB514 SD1 HD1 CD2 – Provides a tax refund to the taxpayers of the State and makes deposits to the emergency and budget reserve fund and pension accumulation fund pursuant to article VII, section 6, of the Hawaii State Constitution. Appropriates funds. (CD1)
Act 114 increases the minimum wage for the first time since 2018, the State says, from $10.10 per hour to $12.00 per hour starting Oct. 1, 2022. The minimum wage will then rise by $2.00 increments according to the following schedule:
- $14.00 per hour starting Jan. 1, 2024
- $16.00 per hour starting Jan. 1, 2026, and
- $18.00 per hour starting Jan. 1, 2028
“More than 190,000 workers in Hawaiʻi will benefit from these wage increases. This will help working families pay for housing, food, healthcare, and other necessities,” said Gov. Ige in a news release. “The minimum wage increases will also give our economy a boost, as these families have more income to purchase what they need from local businesses.”
The State also details the second bill, which was signed into law as Act 115, which officials say “puts more money directly into the pockets of Hawaiʻi residents by providing tax refunds to taxpayers and their dependents.” According to the State:
Gov. Ige first proposed a tax refund in his 2022 State of the State address given the strong revenue projections, and the state Legislature was able to increase the amount that will be returned to Hawaiʻi taxpayers.
Act 115 provides a tax refund of $300 for taxpayers who earn less than $100,000 a year (or couples earning less than $200,000), and $100 for taxpayers who earn $100,000 or more (or couples earning $200,000 or more).
The Department of Taxation anticipates that it will begin issuing the tax refunds in the last week of August. It will provide more details in the coming days.
“At the start of the 2022 legislative session, we made a commitment to support programs and policies that would help our residents get back on their feet. Both bills represent a collaborative effort to bring the people of Hawaiʻi some relief as we continue to recover from the two-year pandemic,” Gov. Ige said.