HI HB938

Establishes an income tax credit equal to 25% of qualified costs incurred by employers who create on-site early childhood facilities (acquisition, construction, establishment, and operating costs excluding insurance).

Requires on-site early childhood facilities to be licensed and approved by the Department of Human Services and accredited by a recognized national early childhood accrediting agency within two years of operation.

Imposes a cap on annual credits per taxpayer and an aggregate cap for all taxpayers, with credits allocated on a first-come, first-served basis by certification date if the aggregate limit is exceeded.

Requires full recapture of all tax credits claimed if the facility fails to operate for a minimum of ten years, unless the Department of Human Services certifies reasonable cause for closure.

Establishes a 1.0 FTE on-site early childhood facility coordinator position in the Executive Office on Early Learning and appropriates funding for fiscal years 2022-2023 and 2023-2024; credit applies to taxable years beginning after December 31, 2023.