The enactment of SB2473 would impact Hawaii Revised Statutes by creating a new section that facilitates a refundable tax credit for family caregivers. The bill outlines the qualifications for eligible taxpayers and specifies the types of expenses that can be claimed. By financially supporting family caregivers, it aims to alleviate some of the fiscal burdens they face, thereby encouraging more individuals to provide care at home rather than seeking institutional solutions. The credit is expected to benefit low- to moderate-income families who often bear the brunt of caregiving costs.
Summary
SB2473, relating to taxation, introduces a family caregiver tax credit aimed at providing financial relief to the state's unpaid caregivers, who play a crucial role in the long-term care system. The legislation acknowledges the significant contributions of approximately 154,000 family caregivers in Hawaii, who are estimated to provide nearly 144 million hours of unpaid care valued at $2.6 billion annually. The bill seeks to support these caregivers by allowing eligible taxpayers to claim a credit of up to $5,000 for qualified expenses incurred while caring for a relative in need of assistance, emphasizing the state's recognition of caregiving as a vital societal issue.
Sentiment
Overall sentiment toward SB2473 appears to be positive, particularly among advocacy groups that champion support for family caregivers. The rationale behind the tax credit resonates with many legislators and stakeholders who recognize the challenges faced by unpaid caregivers, including financial strain and caregiving-related expenditures. However, there may be concerns regarding the sustainability of funding for this tax credit and its implications for state revenue, which could provoke discussions around balancing support for caregivers with broader fiscal responsibilities.
Contention
Notable points of contention may arise regarding the eligibility criteria for the tax credit and the limits on the amount that can be claimed. The requirement that only one taxpayer per household can claim the credit for a care recipient could lead to disagreements among family members about the distribution of caregiving responsibilities and the associated financial relief. Additionally, discussions may surface regarding the broader implications of supporting family caregivers at the expense of potentially delaying institutional funding solutions for long-term care needs.
A resolution to direct the Clerk of the House of Representatives to only present to the Governor enrolled House bills finally passed by both houses of the One Hundred Third Legislature.