Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Caregiver Tax Credit topic
No spam. Unsubscribe anytime.
Committee backs $5,000 caregiver tax credit; fiscal impact cited at about $397.4 million
Summary
The committee recommended passage of HB 701 with amendments adopting the Executive Office on Aging's changes and recording a $5,000 nonrefundable credit. The Department of Taxation previously projected a near $397.4 million annual reduction in general fund revenue at that credit level.
The Senate Committee on Health and Human Services voted to pass House Bill 701, which would create a tax credit for family caregivers. Committee amendments adopt Executive Office on Aging language and set a committee‑reported effective date of Dec. 31, 2050; committee materials note the measure as a $5,000 nonrefundable credit.
Advocates including ARP Hawaii, Hawaii Children’s Action Network and the Kupuna advisory council testified in strong support, saying a credit would reduce financial pressure on families providing care at home. Audrey Suga Nakagawa (ARP Hawaii) told the committee the cost of care can average approximately $7,200 a year and described ongoing discussions about verification and processing with state tax officials.
The Department of Taxation summarized an earlier fiscal projection for a $5,000 nonrefundable credit at about $397.4 million annual loss to the general fund. Committee members noted that projection during Q&A and recorded the projection in the committee report. Witnesses referenced Oklahoma as a state that has enacted similar credit language.
The committee adopted the chair’s recommendation to pass with the Executive Office on Aging’s amendments and to note the $5,000 nonrefundable credit (fiscal estimate shared during the hearing). The measure moves forward for further consideration with that fiscal note recorded.
