Many bills in the Legislature begin to change and take shape this time of year, and one widespread tax credit bill is doing exactly that.
The Senate’s Ways and Means committee approved a new version of House Bill 1049Tuesday. The version increases the food excise tax credit, doubling it from its current rate.
It also increases the earned income tax credit from 20% to 40% of the federal rate.
In addition to those raises, it also nearly quadruples the amount families receive from the child and dependent care tax credit — from $2,400 to $10,000 for one child.
HB 1049 originally included a new tax credit for teachers that could be used to purchase classroom supplies. But WAM chair Donovan Dela Cruz suggested moving that specific credit to HB 1327.
In its original form, HB 1049 would have also provided relief for renters. But Sen. Dela Cruz noted that increased financial support to the state Public Housing Authority's housing voucher program could be more effective.
The Senate’s Ways and Means committee will discuss the future of HB 1327 Wednesday.
