HB 400 Summary

• Establishes an employer-provided or employer-sponsored child care income tax credit under Hawaii Revised Statutes Chapter 235, allowing employers who employ at least one employee in the State to claim a credit based on a percentage of child care operational costs minus employee contributions.

• Limits the annual child care operational credit to a specified percentage of tax liability, with unused credits carried forward for five taxable years, and requires credit claims be filed within twelve months of the taxable year end.

• Creates an employer child care property income tax credit for the purchase or acquisition of child care property used exclusively for employer-provided child care, claimable for the year property is placed in service and the nine following years at a specified annual rate.

• Requires employers to maintain records including employee names, child care provider names, and other information necessary to verify credit claims, with the Director of Taxation authorized to audit, adjust, and establish rules for both credits.

• Takes effect June 30, 3000.