Report Title:

Caregivers; Tax Credit

 

Description:

Provides a tax credit against income tax to caregivers who care for qualified care recipients in graduated amounts from $250 to $1,000 based on adjusted gross income.  Applies to taxable years beginning after 12/31/2009, and repealed on 01/01/2013.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1528

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

relating to caregivers.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§235‑    Caregiver tax credit.  (a)  There shall be allowed a caregiver tax credit to each eligible taxpayer who is not claimed and is not otherwise eligible to be claimed as a dependent by another taxpayer for federal or Hawaii state individual income tax purposes, and who files an individual net income tax return for a taxable year.

     (b)  The amount of the caregiver tax credit shall be based on adjusted gross income of the caregiver as defined in the Internal Revenue Code of 1986, as amended, according to the following schedule:

TAX CREDIT SCHEDULE

     Adjusted Gross Income             Tax Credit

      $29,999 and under                 $1,000

      $30,000 to $49,999                $  700

      $50,000 to $74,999                $  400

      $75,000 and over                  $  250

     (c)  An eligible taxpayer may claim the tax credit for every taxable year that the eligible taxpayer provides care to a care recipient.  Only one caregiver per household may claim a tax credit for any care recipient cared for in a taxable year.  An eligible taxpayer may 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)  An eligible taxpayer shall certify to the department that the taxpayer is in compliance with all applicable federal, state, and county statutes, rules, and regulations.

     (e)  If the tax credit claimed by the taxpayer under this section exceeds the taxpayer's tax liability, the excess of credit over tax liability shall be refunded to the taxpayer; provided that the tax credit properly claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer; and provided that no refunds or payments on account of the tax credit allowed by this section shall be made for amounts less than $1.

     (f)  Every claim, including amended claims, for the tax credit under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the tax credit may be claimed.  Failure to meet the filing requirements of this subsection shall constitute a waiver of the right to claim the tax credit.

     (g)  The director of taxation shall prepare such forms as may be necessary to claim a tax credit under this section, shall require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91 to effectuate the purposes of this section.

     (h)  The department shall report to the legislature annually, no later than twenty days prior to the convening of every regular session, on the number of taxpayers claiming the tax credit and the total cost of the tax credit to the State during the past year.

     (i)  The department shall assist the executive office on aging to provide information on caregiver services to each taxpayer who claims the tax credit.

     (j)  As used in this section:

     "Caregiver" means a spouse, child, parent, sibling, legal guardian, reciprocal beneficiary as that term is defined in section 572C-3, or any other person who is related by blood, marriage, or adoption to the person cared for.

     "Eligible taxpayer" means a caregiver who cares for a qualified care recipient.

     "Qualified care recipient" means a person who is sixty years of age or older, a citizen or resident alien of the United States, and a relative of the caregiver who:

     (1)  Has resided with the caregiver for at least six months of the taxable year for which the credit is claimed; or

     (2)  Has received more than fifty per cent of the qualified care recipient's financial support during the taxable year from the caregiver; and

     (3)  Is certified by a licensed physician or advanced practice registered nurse as requiring one of the following:

         (A)  Substantial supervision to protect the qualified care recipient from threat to health or safety due to cognitive impairment; or

         (B)  Substantial assistance to perform at least two of the following activities of daily living:

              (i)  Bathing;

             (ii)  Eating;

            (iii)  Using the toilet;

             (iv)  Dressing; or

              (v)  Transferring, such as from bed to wheelchair."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval, apply to taxable years beginning after December 31, 2009, and be repealed on January 1, 2013.

 

INTRODUCED BY:

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