Governor Neil Abercombie of Hawaii signed into law legislation capping all deductions on residents with certain income levels. For 2011 through 2015, singles in Hawaii with adjusted gross income (AGI) above $100,000 will only be allowed to claim $25,000 for charitable giving and other deductions, and couples with AGI above $200,000 will be allowed $50,000. This bill is similar to legislation vetoed by the former governor in 2010 but has a lower threshold, capturing more taxpayers.
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Governor Linda Lingle vetoed H.B. 1907 a tax bill that would have capped itemized deductions for higher income individuals including charitable contributions. The measure would have resulted in tax increases totaling more than $140 million over the next five years.
The non-profit community expressed concerns to Governor Lingle that this measure would discourage donations and contributions from individuals and small businesses since they would no longer be able to deduct these contributions on their State income tax returns.
Lingle noted in a Statement of Objection (see below), “Our community is still feeling the impacts of the recession and this is the time when we want to encourage donations to charitable organizations, not enact laws that hinder them.”
- Press Release: Governor Lingle Vetoes Bills that Discourage Investments, Charitable Contributions
- Governor’s Statement of Objection