(BIVN) – State lawmakers have reached an agreement on a bill to maintain income tax relief for Hawaiʻi residents. 

On Tuesday, a House and Senate conference committee accepted a final version of Senate Bill 3125, “ensuring that previously enacted income tax relief will remain in place for working families across the state,” a media release stated. 

The conference committee was livestreamed on the State House channel. Hilo’s State Representative Chris Todd was the chair of the House conferees. 

According to a Senate news release:

The final version of SB3125 SD1, HD1, CD 1 maintains the income tax cuts passed in 2024 for joint filers earning under $350,000, heads of household under $262,500, and single filers under $175,000, preserving critical financial relief for our working and middle-income households.

The agreement also does not include the proposed additional 1% increase on the top three income tax brackets, helping protect many local small business owners who file as individuals and supporting Hawaiʻi’s broader economy.

Federal funding cuts have created economic uncertainty, resulting in lower general fund tax revenues for the state.

Lawmakers worked through conference committee negotiations to reconcile differences between the House and Senate versions of the measure. Throughout the process, the Senate remained committed to preserving income tax relief for 90% of our local families.

“Affordability for local families remains a top priority for the Senate. Despite federal funding cuts affecting our budget, we are standing by our commitment to the people by preserving and continuing the promised tax relief,” said Senator Donovan M. Dela Cruz, Chair of the Senate Committee on Ways and Means (D, District 17).

“Preserving this tax relief means keeping our promise to Hawaiʻi’s working families. At a time when the cost of living continues to challenge so many households, maintaining these income tax cuts will help families keep more of what they earn and provide greater financial stability. I appreciate the collaboration that made this agreement possible while protecting essential services for our communities,” said Senator Sharon Y. Moriwaki, Vice Chair of the Senate Committee on Ways and Means (D, District 12).

Photo of House and Senate conferees following the agreement on SB3125 (courtesy Hawaiʻi Senate)

“Families in my district and across Hawaiʻi are feeling the pressure of higher everyday costs, from groceries to housing. Preserving this tax relief is the right decision because it puts money back into the pockets of local residents who need it most. This agreement reflects our commitment to supporting working families while maintaining a responsible path forward for the State,” said Senator Kurt Fevella (R, District 20).