HI HB1182

Replaces the existing formula for calculating the income tax credit for household and dependent care expenses with a tiered table based on adjusted gross income (AGI).

Credits are available to resident taxpayers not claimed as dependents who maintain a household with qualifying individuals and pay employment-related care expenses.

Applicable credit percentages range from 25% for AGI not over $25,000, decreasing in 1% increments at each $5,000 income threshold, down to 15% for AGI over $50,000.

Excess credits over tax liability are refunded to taxpayers, including full payment of credits for individuals with no tax liability (minimum $1).

Effective July 1, 2030, applying to taxable years beginning after December 31, 2014.