Increases the household and dependent care services tax credit in Hawaii to better reflect the rising cost of child care.

The bill amends the household and dependent care services tax credit in Hawaii to increase the percentage of child and dependent care expenses for which the credit may be applied. This change aims to better reflect the rising cost of child care, which currently exceeds $13,000 per year for working families. The bill also introduces a cost-of-living adjustment factor to periodically adjust the credit based on changes in the Urban Hawaii Consumer Price Index. This adjustment ensures the credit remains effective in providing financial relief to working families.

Increases the household and dependent care services tax credit in Hawaii to better reflect the rising cost of child care.

The bill amends the household and dependent care services tax credit in Hawaii to increase the percentage of child and dependent care expenses for which the credit may be applied. This change aims to better reflect the rising cost of child care, which currently exceeds $13,000 per year for working families. The bill also introduces a cost-of-living adjustment factor to periodically adjust the credit based on changes in the Urban Hawaii Consumer Price Index. This adjustment ensures the credit remains effective in providing financial relief to working families.