HB18 Summary

• Adds a new non-refundable long-term care tax credit to Hawaii tax code for taxpayers filing income tax returns.

• Eligibility limited to individual taxpayers below specified adjusted gross income thresholds and corporate taxpayers that are employers offering long-term care insurance benefits.

• Tax credit equals the lesser of a specified dollar amount (for individuals or corporations) or a percentage of long-term care insurance premium payments made during the taxable year.

• Credit applies to premiums covering the taxpayer, their spouse, dependents, children, stepchildren, or parents as defined under federal tax law.

• Taxpayers cannot claim both this credit and a medical expense deduction under Internal Revenue Code Section 213 for the same long-term care insurance costs; all claims must be filed within 12 months after the taxable year ends.