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Bill Summary · HB 326

Legislative bill overview

HB 326 proposes modifications to Hawaii's household and dependent care services tax credit, a state income tax benefit that helps offset childcare and elder care expenses for working families. The bill was introduced in January 2025 and carried over to the 2026 legislative session for further consideration after being referred to three House committees (Human Services & Homelessness, Economic Development, and Finance).

Why is this important

Dependent care tax credits directly affect household budgets for working parents and caregivers, particularly lower and middle-income families who spend significant portions of earnings on childcare. Changes to this credit can either increase accessibility to care services or shift financial burden, making it a substantive policy issue affecting workforce participation and family economics.

Potential points of contention

  • Cost to state budget – Expanding or modifying the credit increases tax expenditures; fiscal conservatives may resist revenue loss while advocates argue benefits justify costs
  • Income eligibility thresholds – Determining who qualifies (income caps, family size adjustments) affects whether benefit reaches intended populations or unintentionally excludes struggling families
  • Definition of qualifying care – Disputes may arise over what services count (licensed facilities only vs. family care, after-school programs, summer camps, elder care scope)

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

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