Bill Text: HI HB1769 | 2024 | Regular Session | Introduced
Bill Title: Relating To Taxation.
Spectrum: Strong Partisan Bill (Democrat 25-2)
Status: (Engrossed - Dead) 2024-03-18 - The committee on HHS deferred the measure. [HB1769 Detail]
Download: Hawaii-2024-HB1769-Introduced.html
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1769 |
THIRTY-SECOND LEGISLATURE, 2024 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that family caregivers are the backbone of the long-term care system in the State. AARP's 2023 report "Valuing the Invaluable" found that 154,000 residents of the State provide unpaid caregiving services for a loved one. The report finds that each year, these family caregivers contribute nearly one hundred forty-four million hours of unpaid services, estimated at a value of $2,600,000. Caregiving services can range from managing personal finances and transporting for medical visits to providing twenty-four-hour supervision and assisting with bathing, toileting, and dressing so that their loved ones are not prematurely institutionalized and can remain in their homes.
The legislature further finds that nonpaid family caregivers face many physical, emotional, and financial challenges and often balance caregiving with work and other personal responsibilities. A 2021 national study found that, on average, family caregivers spend twenty-six per cent of their income on caregiving services; nearly eight in ten caregivers report having routine out-of-pocket expenses related to caregiving; and that these out-of-pocket expenses average $7,242 per year. The legislature believes that the demands on family caregivers are not isolated family issues and that the State should assist in the delivery of meaningful support and solutions for those that provide unpaid long-term care services in the State.
Accordingly, the purpose of this Act is to establish a tax credit for nonpaid family caregivers.
SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235‑ Family
caregiver tax credit. (a) There
shall be allowed to each eligible taxpayer subject to the tax imposed by this
chapter a family caregiver tax credit that shall be deductible from the
taxpayer's net income tax liability, if any, imposed by this chapter for the
taxable year in which the credit is properly claimed.
(b)
The family caregiver tax credit shall be equal to the qualified expenses
of the taxpayer, up to a maximum of $5,000 in any taxable year; provided that
married individuals filing separate tax returns for a taxable year for which a
joint return could have been filed by them shall claim only the tax credit to
which they would have been entitled had a joint return been filed.
(c)
An eligible taxpayer may claim the tax credit for every taxable year or
part thereof that the eligible taxpayer provides care to a care recipient
during the taxable year; has personally incurred uncompensated expenses
directly related to the care of a care recipient; and has not claimed the care recipient
as a dependent for the purpose of a tax deduction in the same taxable year. Only one eligible taxpayer per household may
claim a tax credit for any care recipient cared for in a taxable year. An eligible taxpayer shall not claim multiple
tax credits under this section in a taxable year, regardless of the number of
care recipients receiving care from the eligible taxpayer.
(d) The director of taxation:
(1) Shall prepare any forms that may be
necessary to claim a tax credit under this section;
(2) May require the taxpayer to furnish
reasonable information to ascertain the validity of the claim for the tax
credit made under this section; and
(3) May adopt rules pursuant to chapter
91 necessary to carry out this section.
(e)
If the tax credit claimed by the eligible taxpayer under this section
exceeds the amount of income tax payments due from the eligible taxpayer, the
excess of credit over payments due shall be refunded to the eligible taxpayer. All claims for the tax credit under this
section, including amended claims, shall be filed on or before the end of the
twelfth month following the close of the taxable year for which the credit may
be claimed. Failure to comply with the
foregoing provisions shall constitute a waiver of the right to claim the
credit.
(f) The department of taxation shall report to
the legislature, no later than twenty days prior to the convening of each
regular session, on the number of eligible taxpayers claiming the tax credit
and the total cost of the tax credit under this section to the State during the
past year.
(g)
As used in this section,
"Activity of daily living" has
the same meaning as defined in section 349-16.
"Care
recipient" means an individual who:
(1) Is a citizen of the United States or a qualified alien; provided that for the purposes of this paragraph, "qualified alien" means a lawfully admitted permanent resident under the Immigration and Nationality Act;
(2) Is not covered by any comparable government or private home- and community-based care service, except or excluding kupuna care services;
(3) Does not reside in a long-term care facility, such as an intermediate care facility, assisted living facility, skilled nursing facility, hospital, adult foster home, community care foster family home, adult residential care home, expanded adult residential care home, or developmental disabilities domiciliary home; and
(4) Has impairments of at least:
(A) Two activities of daily living;
(B) Two instrumental activities of daily living;
(C) One activity of daily living and one instrumental activity of
daily living; or
(D) Substantive cognitive impairment requiring substantial
supervision because the individual behaves in a manner that poses a serious
health or safety hazard to the individual or another person.
"Care
recipient" also refers to a person with a disability as that term is
defined under section 515-2.
"Eligible
taxpayer" means any relative of a care recipient who:
(1) Has
a federal adjusted gross income of $75,000 or less (or $125,000 if filing a tax
return jointly); and
(2) Has
undertaken the care, custody, or physical assistance of the care recipient.
"Instrumental activities of daily
living" has the same meaning as defined in section 349-16.
"Kupuna care services" has the
same meaning as defined in section 349-16.
"Qualified expenses" means
costs that are directly incurred by the eligible taxpayer in providing care to
a care recipient, including but not limited to:
(1) The
improvement or alteration to the eligible taxpayer's primary residence to
permit the care recipient to live in the residence and remain mobile, safe, and
independent, including entrance ramps, safety grab bars by toilets, and the conversion
of tubs to accessible showers;
(2) The
purchase or lease of equipment and supplies, including but not limited to
durable medical equipment, incontinent undergarments, and portable commodes,
necessary to assist a care recipient in carrying out one or more activities of
daily living; and
(3) Other
paid or incurred expenses by the eligible taxpayer that assists the eligible
taxpayer in providing care to a care recipient, such as expenditures related
to:
(A) Home care aides or chore workers;
(B) Respite care;
(C) Adult day care or adult day health center services;
(D) Personal care attendants;
(E) Transportation, including but not limited to para-transit
service for non-emergency medical transport;
(F) Health care equipment; and
(G) Assistive technology, including emergency alert system and voice
activated medication dispensers or reminders.
"Relative"
means a spouse, child, parent, sibling, legal guardian, a reciprocal
beneficiary as that term is defined in section 572C-3, a partner as that term
is defined in section 572B-1, or any other person who is related to a care
recipient by blood, marriage, or adoption, including a person who has a hanai
or substantial familial relationship to the care recipient."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2023.
INTRODUCED BY: |
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Report Title:
Kupuna Caucus; DOTAX; Family Caregiver Tax Credit; Report
Description:
Establishes a refundable tax credit for nonpaid family caregivers. Requires the Department of Taxation to report to the Legislature before the convening of each Regular Session.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.