HI HB753

Increases the applicable percentage for the household and dependent care services tax credit to 50%, reduced by one percentage point for each $3,000 of adjusted gross income above $150,000, with a floor of 25%

Establishes a cost-of-living adjustment for the $150,000 income threshold, indexed annually to the Urban Hawaii Consumer Price Index starting in taxable years after December 31, 2025

Adds a disallowance period preventing taxpayers from claiming the credit for 10 years after a fraud determination or 2 years after a final decision disallowing a previous credit claim

Extends the sunset date for the temporary increase in maximum employment-related expenses (established by Act 163, SLH 2023) from December 31, 2027 to June 30, 2030

Maintains existing expense limits of $10,000 for one qualifying individual and $20,000 for two or more qualifying individuals per taxable year