STAND. COM. REP. NO. 155-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1972

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Human Services & Homelessness, to which was referred H.B. No. 1972 entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose of this measure is to establish a nonrefundable tax credit for nonpaid family caregivers.

Your Committee received testimony in support of this measure from the Disability and Communication Access Board; Alzheimer’s Association–Hawaii; Hawaiʻi Children's Action Network Speaks!; AARP Hawaiʻi; Hawaiʻi Public Health Institute; Chamber of Commerce Hawaii; Hawaii Primary Care Association; Hawaii Family Caregiver Coalition; and numerous individuals. Your Committee received comments on this measure from the Department of Taxation; Executive Office on Aging; and Tax Foundation of Hawaii.

Your Committee finds that unpaid family caregivers provide essential daily support that allows many older adults and persons with disabilities to remain safely in their homes, but the financial strain of caregiving places significant pressure on household budgets and long‑term economic stability. Your Committee further finds that establishing a targeted family caregiver tax credit will help offset out‑of‑pocket caregiving costs and recognize the critical role family caregivers play in the State's long‑term care system. This measure offers financial relief to caregivers with modest incomes and strengthens the State's efforts to support aging in place.

Your Committee has amended this measure by:

(1) Making the amount of the credit equal to seventy-five percent of the taxpayer's qualified expenses;

(2) Removing the $3,000,000 appropriation as it appears to impose an aggregate cap that the Department of Taxation is unable to administer;

(3) Specifying that expenses that are used to claim the tax credit under this measure are not eligible to be claimed under the expenses for household and dependent care services necessary for gainful employment tax credit;

(4) Changing the effective date to July 1, 3000, to encourage further discussion; and

(5) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Human Services & Homelessness that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1972, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1972, H.D. 1, and be referred to your Committee on Economic Development & Technology.

Respectfully submitted on behalf of the members of the Committee on Human Services & Homelessness,

____________________________

LISA MARTEN, Chair