Bill > HB2007

This bill aims to increase the financial relief provided to working families through the household and dependent care services tax credit by adjusting the applicable percentage of employment-related expenses that can be claimed. Specifically, it modifies the calculation of this percentage, making it more favorable to taxpayers by reducing it by one percentage point for every $3,000 of adjusted gross income above a certain threshold, with a minimum applicable percentage of 25%. The bill also introduces a "cost-of-living adjustment factor" to recompute the threshold amount annually starting in 2026, ensuring the credit's value keeps pace with inflation. Furthermore, it extends the sunset date for the temporary increase in maximum employment-related expenses, originally established by Act 163 in 2023, to June 30, 2030, meaning these enhanced provisions will remain in effect until that date. The bill also includes provisions to prevent fraudulent claims and disallows credits for certain periods after a fraud determination or disallowance.

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

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=2007&year=2026