HI HB1049

Increases the child and dependent care tax credit by replacing the tiered percentage system with a 50% credit that reduces by one percentage point per $3,000 of adjusted gross income above $150,000, with a minimum of 25%.

Raises the dollar limits on employment-related expenses eligible for the child and dependent care credit from $2,400/$4,800 to $10,000/$20,000 for one or multiple qualifying individuals.

Implements annual cost-of-living adjustments to the $150,000 threshold amount for the child and dependent care credit beginning in 2024, calculated using the Urban Hawaii Consumer Price Index.

Increases the refundable earned income tax credit from 20% to 40% of the federal earned income tax credit claimed.

Expands income thresholds and increases credit amounts for the refundable food/excise tax credit, with credits ranging from $220 per exemption (under $15,000 income) to $0 (over $40,000-$60,000 depending on filing status).

All three tax credits sunset and become unavailable for taxable years beginning after December 31, 2028.