HI HB326

Replaces the existing tiered applicable percentage structure for the household and dependent care services tax credit with a new formula that starts at 50% and reduces by one percentage point for each $3,000 (or fraction thereof) of adjusted gross income above a threshold amount, with a minimum of 25%.

Sets the initial threshold amount at $150,000 for taxable years beginning after December 31, 2024, with annual cost-of-living adjustments thereafter based on the Consumer Price Index.

Maintains the existing dollar limits of $10,000 for one qualifying individual and $20,000 for two or more qualifying individuals, along with other eligibility requirements and definitions.

Adds a new definition of "cost-of-living adjustment factor" calculated from the Consumer Price Index for All Urban Consumers, to be used for annual threshold adjustments.

Applies to taxable years beginning after December 31, 2024, and automatically repeals on June 30, 2030, reverting the tax credit to its prior form.