Adjusts the household and dependent care services tax credit in Hawaii to increase the percentage of expenses that can be claimed.

The bill amends the household and dependent care services tax credit in Hawaii to increase the percentage of employment-related expenses that can be claimed. It adjusts the applicable percentage based on the taxpayer's adjusted gross income, with a maximum credit of 25%. The bill also sets a dollar limit on the amount creditable, up to $10,000 for one qualifying individual and $20,000 for two or more. The changes apply to taxable years beginning after December 31, 2025, and include provisions for cost-of-living adjustments and disallowance periods.

Adjusts the household and dependent care services tax credit in Hawaii to increase the percentage of expenses that can be claimed.

The bill amends the household and dependent care services tax credit in Hawaii to increase the percentage of employment-related expenses that can be claimed. It adjusts the applicable percentage based on the taxpayer's adjusted gross income, with a maximum credit of 25%. The bill also sets a dollar limit on the amount creditable, up to $10,000 for one qualifying individual and $20,000 for two or more. The changes apply to taxable years beginning after December 31, 2025, and include provisions for cost-of-living adjustments and disallowance periods.