Gov. David Ige signed HB2510 Relating to Income (Act 114) and SB514 Relating to the General Fund (Act 115) into law yesterday.
Act 114 increases the minimum wage from $10.10 per hour to $12.00. The change will take effect on Oct. 1, 2022. The minimum wage will then rise by $2.00 increments over the next few years. The increases will take place on the following dates:
- $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
Act 114 also makes the Earned Income Tax Credit permanent and refundable, increasing the income of working families, which will lead to greater stability for Hawaiʻi’s keiki.
The second bill, now Act 115, provides tax refunds to Hawaiʻi taxpayers and their dependents. It 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.
In a statement Governor Ige said, “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.”
(Photo credit: Office of Governor David Ige)
