HI HB1958

Amends Hawaii's dependent care tax credit under Section 235-55.6 to increase the applicable percentage of employment-related expenses that qualify for the credit across all adjusted gross income brackets.

Modifies the tax credit percentage table by replacing existing percentages (25%, 24%, 23%, 22%, 21%, 20%, and 15%) with blank percentages to be filled in, effectively allowing for increases in the credit rates.

Increases the dollar limits on creditable employment-related expenses from $2,400 to a higher amount for one qualifying individual and from $4,800 to a higher amount for two or more qualifying individuals, with specific amounts to be determined.

Applies to taxable years beginning after December 31, 2019, allowing residents with qualifying dependents to claim higher tax credits for dependent care expenses.

Takes effect on December 31, 2059.