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HB 753

RELATING TO THE HOUSEHOLD AND DEPENDENT CARE SERVICES TAX CREDIT.

2025 Regular Session Introduced by Terez Amato and 9 co-sponsors

Bill HB 753 enhances the Household and Dependent Care Services Tax Credit, easing costs for families and promoting workforce participation, especially for working parents.

Reported from ECD (Stand. Com. Rep. No. 334), recommending referral to FIN.
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Bill Summary · HB 753

Summary of Bill HB 753: Household and Dependent Care Services Tax Credit

Bill Number: HB 753
Introduced On: January 17, 2025
Current Status: Reported from ECD (Stand. Com. Rep. No. 334), recommending referral to FIN
Subject Areas: Taxation, Employment-related Expenses, Household and Dependent Care Services Tax Credit, Keiki Caucus

Purpose and Intent

The primary purpose of Bill HB 753 is to enhance the Household and Dependent Care Services Tax Credit. This tax credit aims to provide financial relief to families by offsetting the costs associated with household and dependent care services. The bill seeks to make these services more accessible, thereby supporting working families and promoting workforce participation.

Key Provisions

  • Applicable Percentage Adjustment: The bill proposes adjustments to the applicable percentage used to calculate the tax credit, which would directly affect the amount of credit families can claim.
  • Employment-related Expenses: It clarifies the types of employment-related expenses that qualify for the tax credit, ensuring that families can receive credits for a broader range of care services.
  • Increased Accessibility: By enhancing the tax credit, the bill aims to alleviate the financial burden on families who require household and dependent care, particularly those with young children or dependents with disabilities.

Impact

  • Beneficiaries: The bill is expected to benefit a wide range of families, particularly those with children (referred to as "Keiki" in Hawaiian) and dependents requiring care. This includes working parents who may struggle to afford quality care services.
  • Economic Implications: By providing a tax credit, the bill may encourage more parents to enter or remain in the workforce, thus potentially boosting economic activity and productivity.

Legislative Timeline

  • January 21, 2025: Bill referred to the committees on HSH, ECD, and FIN.
  • January 28, 2025: The committee on HSH recommended that the measure be passed with amendments.
  • January 30, 2025: The bill passed Second Reading as amended and was referred to the committee on ECD.
  • February 5, 2025: The committee on ECD recommended that the measure be passed unamended.
  • February 11, 2025: The report was adopted, and the bill was referred to the committee on FIN.

Conclusion

Bill HB 753 represents a significant effort to support families through the enhancement of the Household and Dependent Care Services Tax Credit. By adjusting the applicable percentage and clarifying qualifying expenses, the bill aims to provide much-needed financial relief to working families, thereby fostering a more inclusive workforce. The bill is currently under consideration by the Finance Committee following its passage through earlier legislative stages.

Compiled from official sources — confirm details with the bill’s official record.

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