STAND. COM. REP. NO. 1708

Honolulu, Hawaii

RE: H.B. No. 701

H.D. 3

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 701, H.D. 3, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose and intent of this measure is to provide assistance to nonpaid family caregivers.

More specifically, this measure:

(1) Establishes a family caregiver tax credit for nonpaid family caregivers;

(2) Requires the Department of Taxation to submit annual reports to the Legislature; and

(3) Appropriates moneys to the Executive Office on Aging.

Your Committee received written comments in support of this measure from the Disability and Communication Access Board, Executive Office on Aging, Hawaii State Council on Developmental Disabilities, Policy Advisory Board for Elder Affairs, AARP Hawaii, ALS Network, Alzheimer's Association Hawaii Chapter, Democratic Party of Hawaii, Easterseals Hawaii, Hawaii Children's Action Network Speaks!, Hawaii Primary Care Association, and nine individuals.

Your Committee received written comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that family caregivers are the backbone of the long-term care system in the State. Your Committee also finds that caregiving services can range from managing personal finances and transporting for medical visits to providing twenty‑four-hour supervision and assisting with bathing, toileting, and dressing so that loved ones are not prematurely institutionalized and can remain in their homes. Your Committee recognizes that nonpaid family caregivers face many physical, emotional, and financial challenges and often balance caregiving with work and other personal responsibilities.

Your Committee has amended this measure by:

(1) Clarifying the Executive Office on Aging's certification responsibilities with regard to the tax credit; and

(2) 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 Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 701, H.D. 3, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 701, H.D. 3, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair