SB 2291 Summary

• Establishes a refundable income tax credit for taxpayers who pay eligible business child care expenses for their employees, equal to an unspecified percentage of those expenses.

• Eligible expenses include payments to licensed or registered child care facilities in Hawaii to support employee child care needs (capped at an unspecified amount per child per year) and purchases of child care enrollment reserved for employee children (capped at an unspecified amount per year).

• Allows excess credits to be refunded to taxpayers; individuals with no tax liability can receive the credit as a refund, but no refunds under $1 will be issued.

• Requires tax credit claims to be filed within 12 months following the close of the taxable year; failure to meet this deadline waives the right to claim the credit.

• Takes effect July 1, 2050, and applies to taxable years beginning after December 31, 2020.