Bill > HB701

This bill establishes a tax credit for nonpaid family caregivers in Hawaii, recognizing the significant contributions of family members who provide unpaid long-term care services. The tax credit is available to relatives of care recipients with a federal adjusted gross income of $75,000 or less (or $125,000 for joint filers) who provide care to a family member with significant impairments in daily living activities. Qualified expenses for the tax credit include home modifications, medical equipment, respite care, transportation, and other support services directly related to caring for the recipient. Only one family member per household can claim the credit per year, with a maximum credit amount to be determined (specific percentage and dollar amount are left blank in the bill). The credit can be carried forward for up to five years if it exceeds the taxpayer's tax liability. The Executive Office on Aging will be responsible for verifying and certifying the qualified expenses, and the Department of Taxation must submit annual reports to the legislature about the number of claimants and the total cost of the tax credit. The bill includes specific definitions for care recipients, including those with disabilities or impairments in activities of daily living, and sets parameters for what constitutes a qualifying relative. The tax credit will become applicable for taxable years beginning after December 31, 2026, with the bill itself taking effect on December 31, 2050. The legislature has appropriated $100,000 for infrastructure development and implementation of the tax credit program.

Budget and Finance, Business and Industry, Health and Social Services, Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=701&year=2026