H.B. 400 Summary

• Establishes an employer-provided or employer-sponsored child care income tax credit for employers with at least one employee in Hawaii who provide or pay for child care services for their employees.

• Allows employers to claim a credit equal to a percentage of child care operational costs (excluding property costs and amounts paid by employees), with claims filed within 12 months of the taxable year and unused credits carried forward for five years.

• Creates an employer child care property income tax credit for the cost of real and personal property purchased or acquired for constructing, expanding, or operating employer-provided child care facilities, claimable for 10 taxable years at a specified annual rate.

• Requires employers to maintain records documenting employee names, child care provider names, and other information necessary to validate credit claims, with the Director of Taxation authorized to audit, adjust, and adopt rules for administration.

• Takes effect June 30, 3000.