Hawaii Senate Bill SB800

Hawaii 2024 Regular Session

• Introduced: 1/20/23
• Refer: 1/25/23
• Report Pass: 2/17/23
• Refer: 2/17/23

Caption

Relating To Taxation.

Impact

The bill’s provisions enable employers to claim tax credits amounting to seventy-five percent of qualified operational costs for on-site child care services and child care services sponsored at other locations. Additionally, it allows for a one hundred percent tax credit for qualified child care facilities or property purchased for on-site care. This initiative could significantly reduce the financial burden on employers regarding employee child care solutions, fostering a more supportive workplace for working parents.

Summary

SB800 is a legislative bill introduced in Hawaii that aims to establish various income tax credits for employers who provide or sponsor child care services for their employees. The bill modifies Chapter 235 of the Hawaii Revised Statutes by adding provisions that allow qualifying taxpayers to claim tax credits based on specific child care-related costs. It is designed to incentivize businesses to support their employees with child care services, reflecting a recognition of the economic and social importance of child care accessibility.

Contention

While SB800 is largely viewed as a positive development for workers and businesses, there may be points of contention regarding its implementation and effectiveness. Some critics may argue about the adequacy of the proposed tax credits compared to actual child care costs or question whether the credits will sufficiently incentivize employers to establish or maintain child care facilities. Concerns may also be raised regarding how these provisions will be enforced and whether they adequately address the needs of different types of employers, especially small businesses.

Additional_info

The bill will take effect on January 1, 2050, and is applicable to taxable years commencing after December 31, 2022. The timeline gives time for organizations to prepare for adherence to the new regulations, while also allowing for a gradual insight into how effective these tax credits will be in supporting child care initiatives across Hawaii.