Office of the Auditor | State of Hawai`i

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AUDITOR’S SUMMARY

Report No. 26-02

THIS REPORT ASSESSES several income tax incentives allowed under Hawai‘i law. Sections 23-91 through 23-96, Hawai‘i Revised Statutes (HRS), require the Auditor to review specific tax provisions on a five-year recurring cycle.

Specifically, for 2024 and every fifth year thereafter, Section 23-96, HRS, requires the review of the following income tax incentives:

• Credit to promote the purchase of child passenger restraint systems (Section 235-15, HRS);
• Credit for employment-related expenses for household and dependent care services (Section 235-55.6, HRS);
• Credit for a low-income household renter (Section 235-55.7, HRS); and
• Credit for food and excise tax (Section 235-55.85, HRS).

We determined that all four credits are meeting their stated or inferred purposes and recommend that they be retained.