Bill > HB1972

This bill establishes a new nonrefundable tax credit for eligible taxpayers in Hawaii who provide unpaid care to a "care recipient," defined as an individual needing assistance with daily living activities or having cognitive impairments, who does not reside in a long-term care facility. The credit will be equal to seventy-five percent of qualified expenses, up to a maximum of $3,000 per taxable year, and applies to taxable years beginning after December 31, 2026. To qualify, the taxpayer must have personally incurred uncompensated expenses directly related to the care and cannot claim the care recipient as a dependent. The bill also specifies that only one credit can be claimed per household for a care recipient and only one credit per taxpayer annually, regardless of the number of care recipients. The Department of Taxation will be responsible for creating necessary forms, verifying claims, and adopting rules to implement the credit, and must submit an annual report to the legislature on the credit's usage and cost. Qualified expenses include home modifications, necessary equipment and supplies, and services like home care aides, respite care, and transportation. The bill also appropriates funds for the implementation of this tax credit and will take effect on July 1, 3000, with specific provisions for the tax credit and appropriation taking effect earlier.

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

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1972&year=2026