HI HB753

Increases the applicable percentage for calculating the household and dependent care services tax credit from a tiered structure (15-25% based on income) to 50% reduced by one percentage point for each $3,000 of adjusted gross income above a threshold, with a floor of 25%.

Sets the threshold amount at $150,000 for taxable years beginning after December 31, 2024, and adjusts it annually based on the cost-of-living adjustment factor using the Urban Hawaii Consumer Price Index.

Adds a new definition of "cost-of-living adjustment factor" calculated by comparing the Urban Hawaii Consumer Price Index from July of the preceding year to July of the current year.

Extends the sunset date for Act 163's temporary increase in maximum employment-related expenses from December 31, 2027, to June 30, 2030.

Effective July 1, 3000, with provisions sunsetted on June 30, 3005, applying to taxable years beginning after December 31, 2024.