On February 11, 2025, the Hawaii House of Representatives introduced House Bill 701 (HB701), aimed at providing financial relief to family caregivers across the state. Recognizing the vital role these individuals play in the long-term care system, the bill proposes a tax credit specifically for nonpaid family caregivers who often face significant financial burdens while caring for loved ones.

The bill highlights findings from AARP's 2023 report, which indicates that approximately 154,000 residents in Hawaii provide unpaid caregiving services, contributing an estimated $2.6 billion in value annually. Caregiving tasks can range from managing finances to providing essential daily assistance, allowing loved ones to remain at home rather than in institutional care.

Key provisions of HB701 include the establishment of a tax credit designed to alleviate some of the financial pressures faced by caregivers. The legislature notes that many caregivers spend a substantial portion of their income—averaging 26%—on caregiving-related expenses, which can exceed $7,000 annually. This financial strain, coupled with the emotional and physical demands of caregiving, underscores the need for state support.

The introduction of this bill has sparked discussions among lawmakers and advocacy groups. Supporters argue that the tax credit is a necessary step toward recognizing and compensating the invaluable contributions of family caregivers. However, some lawmakers have raised concerns about the potential fiscal impact of the tax credit on the state budget, prompting debates on how to balance support for caregivers with overall financial responsibility.

If passed, HB701 could have significant social implications, potentially improving the quality of life for caregivers and their families. Experts suggest that providing financial assistance may encourage more individuals to take on caregiving roles, ultimately benefiting the state's long-term care system.

As the legislative session progresses, stakeholders will closely monitor the bill's developments, with advocates pushing for its swift passage to ensure that family caregivers receive the recognition and support they deserve.