RELATING TO THE HOUSEHOLD AND DEPENDENT CARE SERVICES TAX CREDIT.

Income thresholds for the tax credit were raised from $25,000 to $140,000, and the maximum income limit was extended to $160,000, allowing more families to qualify for higher credit percentages.

The applicable percentage for the tax credit was recalculated based on the new higher income brackets, increasing the credit amount for middle-income earners.

A new provision was added to disallow tax credit claims if they are determined to be due to fraud.

The bill's section numbering was updated to reflect the House Committee's third reading (HD3), and the summary description was revised to include the new fraud disallowance provision.

The definition of 'cost-of-living adjustment factor' was refined to explicitly name the 'Consumer Price Index for All Urban Consumers for Urban Hawaii' as the primary metric, replacing a less specific reference to the 'Urban Hawaii Consumer Price Index'.

The bill header and internal metadata were updated to reflect the transition from the first reading (HD1) to the second reading (HD2) of the legislative session.

The effective date for the tax credit expansion was changed to July 1, 3000, extending the program indefinitely rather than a specific near-term date.

The definition of a 'qualifying child' was updated to reference Internal Revenue Code section 152(c)(1) instead of section 151(c)(3), ensuring consistency with federal tax definitions.

Header metadata, including author names, document IDs, and formatting codes, were updated to reflect the new House District 1 version.