Bill > SB879

This bill establishes a refundable Family Caregiver Tax Credit to support nonpaid family caregivers in Hawaii who provide long-term care for relatives. The tax credit allows eligible taxpayers with a federal adjusted gross income of $75,000 or less (or $125,000 for joint filers) to claim up to $5,000 annually for out-of-pocket expenses related to caring for a family member with significant care needs. Qualified expenses include home modifications, medical equipment, respite care, transportation, and other support services that help caregivers assist relatives who have impairments in daily living activities or cognitive functions. Only one taxpayer per household can claim the credit per care recipient, and the care recipient must be a U.S. citizen or qualified alien who is not residing in a long-term care facility. The bill is based on data showing that Hawaii has 154,000 unpaid family caregivers who contribute an estimated $2.6 billion in unpaid services annually, with caregivers typically spending an average of 26% of their income on caregiving expenses. The Department of Taxation will be required to report annually to the Legislature on the number of taxpayers claiming the credit and its total cost to the state, with the credit becoming applicable to taxable years beginning after December 31, 2024.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=879&year=2026