What's new in 2022 for Hawaii?

Hawaii has made the following changes to tax law for the 2022 tax year:

1. Taxpayers may exclude up to $7,345 of their military reserve or Hawaii National Guard duty pay from their income, effective for taxable years beginning after December 31, 2021. (Act 197, SLH 2004) 
2. Hawaii has assumed the following provisions from the American Rescue Plan Act (ARPA) of 2021 (Act 7, SLH 2022) 
   1. Exclusion from from gross income the amounts received as "recovery rebates" (stimulus payments) 
   2. Exclusion from gross income of cancelled qualified student loans or discharged in 2021 through 2025
   3. Adopted the special tax treatment of coronavirus-related distributions from eligible retirement plans to individuals from the CARES Act retroactively for taxable years beginning after December 31, 2019
3. The end date for the Important Agricultural Land Qualified Agricultural Cost Tax Credit has been extended to December 30, 2030. (Act 139, SLH 2022)
4. The Renewable Fuels Production Tax Credit is a new credit that has been established for taxable years beginning December 31, 2021. (Act 216, SLH 2022)
5. The Earned Income Tax Credit has been amended to make it refundable and permanent. It provides a carryforward of nonrefundable credits previously claimed. This applies to taxable years beginning after December 31, 2022. (Act 114, SLH 2022)

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