Bill > HB753

This bill increases the household and dependent care services tax credit for Hawaii taxpayers by modifying how the applicable percentage of employment-related expenses is calculated. Currently, the tax credit percentage decreases as a taxpayer's income increases, but the bill establishes a new sliding scale where the percentage starts at 50% and reduces by one percentage point for every $3,000 of income above a $150,000 threshold, with a minimum percentage of 25%. The bill also introduces a cost-of-living adjustment factor to periodically update the income threshold, ensuring the credit keeps pace with economic changes. Additionally, the bill extends the sunset date for the temporary increases established by Act 163 of 2023 to June 30, 2030, and adds provisions to prevent taxpayers from claiming the credit for a specified period after fraudulent or disallowed claims. The legislature's motivation for these changes stems from the high cost of child care in Hawaii (over $13,000 per year) and a desire to provide meaningful financial relief to working families by making the tax credit more responsive to rising expenses.

Budget and Finance, Business and Industry, Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=753&year=2026