HI HB2007

Increases the applicable percentage of employment-related expenses for Hawaii's household and dependent care services tax credit, with the maximum percentage rising from 25% to 50% for taxpayers with adjusted gross income not over $80,000.

Expands income thresholds for the credit, raising the ceiling from $50,000 to $160,000, with taxpayers earning over $160,000 receiving a 5% credit rate.

Establishes fraud disallowance periods: 10 years following a final decision that a credit claim was due to fraud, and 2 years following any final decision disallowing a credit claim.

Extends the sunset date for temporary increases in maximum employment-related expenses (established by Act 163, Session Laws of Hawaii 2023) from December 31, 2027 to June 30, 2030.

Takes effect July 1, 3000 (placeholder date), applies to taxable years beginning after December 31, 2025, and sunsets June 30, 2030.