HI HB1182

Modifies Section 235-55.6 of Hawaii Revised Statutes regarding the income tax credit for household and dependent care services necessary for gainful employment.

Replaces the previous formula for calculating the applicable percentage (25% reduced by 1% for each $2,000 of income over $22,000) with a tiered table based on adjusted gross income brackets ranging from 15% to 25%.

Establishes new applicable percentages: 25% for income not over $25,000; 24% for $25,000-$30,000; 23% for $30,000-$35,000; 22% for $35,000-$40,000; 21% for $40,000-$45,000; 20% for $45,000-$50,000; and 15% for income over $50,000.

Allows resident taxpayers to claim the credit against income tax liability, with excess credits refunded if the credit exceeds tax due, and credits of $1 or more paid to taxpayers with no tax liability.

Takes effect July 1, 2030, and applies to taxable years beginning after December 31, 2014.