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Committee moves refundable caregiver tax credit forward with fiscal concerns noted
Summary
HB 701, which would create a refundable family caregiver tax credit for unpaid caregivers, passed the committee with amendments; Department of Taxation and Tax Foundation raised administration and duplication concerns that the committee asked to be noted in committee records.
The committee advanced House Bill 701, which establishes a refundable family caregiver tax credit for unpaid family caregivers, after testimony from the Department of Taxation, the Executive Office on Aging and AARP Hawaii.
Garrison Kurth of the Department of Taxation provided technical comments and told members the department would stand by its written testimony and be available for questions. Carolyn Cutty Rau (Executive Office on Aging) and Audrey Suga Nakagawa of AARP Hawaii both testified in support, with AARP highlighting the scale of unpaid caregiving in the state and the out‑of‑pocket costs caregivers face.
The Tax Foundation submitted technical comments and urged the committee to consider possible duplication with existing dependent care credits and warned that a 100% refundable credit may reduce incentives for cost control by payors. The chair moved to pass HB 701 with amendments and to add committee notes summarizing the Department of Taxation and Tax Foundation concerns about administration, duplication, and refundability; the committee adopted the recommendation.
What happens next: The bill advances with the committee's requested technical edits and a committee note that captures tax-agency concerns to assist fiscal and drafting review.
