The cost of full-time child care in Hawai'i has skyrocketed. Accordingly, we need to increase the income tax credits allowed for expenses for child and dependent care services to ensure that these credits reflect the economic reality of working families. 

Calculated as a percentage of qualifying expenses, not as a percentage of the federal credit, the state credit covers the same kind of expenses but is currently limited to $2,400 for one child/dependent and $4,800 for two children/dependents. Rates are dependent upon earned income levels.

• Currently, the average cost of child care in Hawaiʻi exceeds $13,000 per year. 

• Full-time child care programs allow parents to obtain stable employment, which increases the economic well-being of the family as a whole. 

• Additionally, early learning programs facilitate the academic and social development of young children and should be supported. Research on the benefits of quality early learning programs indicates that for every $1 invested in such opportunities, society saves $4 to $8 on remedial classes, special education, welfare programs, and criminal justice costs.  

• This bill would double the tax credit amount that most taxpayers could claim for the cost of child care or dependent care, which will increase workers' access to essential care services and allow them to maintain the jobs that provide financial security for their families.