HB2464

SECTION 1. The legislature finds that family caregivers play a vital and often unrecognized role in supporting the health, safety, and independence of elderly individuals and persons with disabilities in the State of Hawaii. Thousands of residents provide uncompensated care to family members, allowing care recipients to remain in their homes and communities rather than entering costly institutional settings.

The legislature further finds that the provisions of family caregiving frequently requires caregivers to incur substantial out-of-pocket expenses, including costs for home modifications, medical equipment, transportation, respite care, and other supports that are essential to maintaining the well-being of care recipients. These financial burdens are borne disproportionately by low- and moderate-income households and can place significant strain on caregivers’ economic stability.

The legislature recognizes that family caregivers provide substantial savings to the State by reducing reliance on publicly funded long-term care services and delaying or preventing institutionalization. Supporting family caregivers is therefore both a compassionate public policy and a fiscally responsible investment that promotes aging in place, community integration, and improved quality of life.

The legislature further finds that targeted tax relief can help offset the uncompensated expenses incurred by family caregivers, encouraging continued caregiving, and acknowledge the economic value of unpaid care work. Providing such relief in a manner that is income-limited, accountable, and subject to oversight ensures that assistance is directed to those most in need while maintaining fiscal responsibility.

Accordingly, the purpose of this Act is to establish a family caregiver tax credit to provide meaningful financial support to eligible 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) Each eligible taxpayer subject to the tax imposed by this chapter may claim a family caregiver tax credit against the taxpayer's individual 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 eligible taxpayer, up to a maximum of $5,000 in any taxable year; provided that married individuals who do not file a joint tax return shall only be entitled to claim the tax credit to the extent that they would have been entitled to claim the tax credit had they filed a joint return. The maximum credit amount under this section shall apply per eligible taxpayer per taxable year, regardless of the number of care recipients receiving care.

(1) Provides care to a care recipient during the taxable year;

(2) Has personally incurred uncompensated expenses directly related to the care of a care recipient; and

(3) Has not claimed the care recipient as a dependent for the purpose of a tax deduction in the same taxable year.

(d) An eligible taxpayer may claim the family caregiver tax credit for qualified expenses incurred in providing care to one or more care recipients during a taxable year; provide that:

(1) The total amount of the family caregiver tax credit claimed by an eligible taxpayer in any taxable year shall not exceed $5,000;

(2) Only one eligible taxpayer per household may claim the family caregiver tax credit in any taxable year; and

(3) Qualified expenses shall not be claimed by more than one eligible taxpayer for the same care recipient in the same taxable year.

(e) 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.

(f) Qualified expenses shall be certified according to the following:

(1) An eligible taxpayer claiming the family caregiver tax credit shall certify, under penalty of perjury, that

(A) The taxpayer meets the eligibility requirements of this section;

(B) The care recipient meets the definition of a care recipient under this section; and

(C) The qualified expenses claimed were actually incurred by the taxpayer and were not reimbursed or otherwise compensated.

(2) The director of taxation may require an eligible taxpayer to submit documentation reasonably necessary to substantiate the claim, including receipts, invoices, or other records, upon audit or review;

(3) Certification by the executive office on aging shall be required only for claims in which the total qualified expenses claimed exceed $3,000 in a taxable year, or as otherwise determined by rule; and

(4) For claims requiring certification under paragraph (3), the executive office on aging shall:

(A) Verify the amount of qualified expenses claimed; and

(B) Issue a certification to the taxpayer verifying the amount of qualified expenses eligible for the credit.

Upon each determination, the executive office on aging shall issue a certificate to the taxpayer verifying the qualified expenses and the credit amount certified for each taxable year. The taxpayer shall file the certificate with the taxpayer's tax return with the department of taxation. Notwithstanding the executive office on aging's certification authority under this section, the director of taxation may audit and adjust certification to conform to the facts.

(g) If the tax credit allowed under this section exceeds the taxpayer's net income tax liability for the taxable year, up to $1,000 of the excess credit shall be refundable and paid to the taxpayer as an overpayment of tax. Any remaining excess credit not refunded under this subsection may be carried forward and used as a credit against the taxpayer's income tax liability in subsequent taxable years until exhausted; provided that no credit carried forward under this subsection shall be used as a credit more than five years after the taxable year in which the qualified expenses are incurred. 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 provision shall constitute a waiver of the right to claim the credit.

(h) The department of taxation shall submit a 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.

(i) The refundable portion of the family caregiver tax credit authorized under subsection (g) shall not exceed $1,000 per eligible taxpayer per taxpayer year, regardless of the total amount of qualified expenses incurred or the number of care recipients.

For the purposes of 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) 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

(3) Has impairments of at least:

(A) Two activities of daily living;

(B) Two instrumental activities of daily living;

(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" includes a person with a disability as 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 joint tax return; and

(2) Has undertaken the care, custody, or physical assistance of the care recipient.

"Instrumental activity of daily living" has the same meaning as defined in section 349-16.

"Qualified expenses" means out-of-pocket expenses directly incurred by the eligible taxpayer in providing care to a care recipient that have not been reimbursed, credited, paid, or otherwise covered by another individual, organization, provider, or government entity. "Qualified expenses" include but are not limited to:

(1) The improvement of or alteration to the eligible taxpayer's primary residence in order 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 expenses paid or incurred by the eligible taxpayer that assist 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;

(D) Personal care attendants;

(E) Transportation, including but not limited to paratransit service for non-emergency medical transport;

(F) Health care equipment; and

(G) Assistive technology, including emergency alert systems and voice activated medication dispensers or reminders.

"Relative" means a spouse, child, parent, sibling, legal guardian, reciprocal beneficiary as defined in section 572C-3, partner as 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. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2026-2027 to be allocated as follows:

(1) $100,000 for infrastructure development and implementation of the family caregiver tax credit; and

(2) $ for the certification of claims for tax credits under the family caregiver tax credit.

The sum appropriated shall be expended by the executive office on aging for the purposes of this Act.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on December 31, 2026; provided that section 2 shall apply to taxable years beginning after December 31, 2027.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2464
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII