Bill > HB853

This bill establishes a refundable Family Caregiver Tax Credit for nonpaid family caregivers who provide care to a care recipient with significant health or functional limitations. The tax credit allows eligible taxpayers (relatives 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 qualified expenses directly related to caregiving. Qualified expenses include home modifications, medical equipment, home care aids, respite care, transportation, and assistive technology. To be eligible, the caregiver must provide uncompensated care to a care recipient who is a U.S. citizen or qualified alien, is not residing in a long-term care facility, and requires assistance with at least two activities of daily living or has substantial cognitive impairment. Only one eligible taxpayer per household can claim the credit in a given year, and the taxpayer cannot claim the care recipient as a dependent. The Department of Taxation will be responsible for creating the necessary forms, verifying claims, and reporting annually to the legislature about the number of taxpayers claiming the credit and its total cost. The bill is set to apply to taxable years beginning after December 31, 2025, and aims to provide financial support to the estimated 154,000 family caregivers in Hawaii who contribute significant unpaid care services.

Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=853&year=2026