Bill Text: HI HB1191 | 2019 | Regular Session | Amended
Bill Title: Relating To Minimum Wage.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Engrossed - Dead) 2019-04-26 - Conference Committee Meeting will reconvene on Friday, 04-26-19 at 3:00PM in Conference Room 423. [HB1191 Detail]
Download: Hawaii-2019-HB1191-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1191 |
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THIRTIETH LEGISLATURE, 2019 |
H.D. 1 |
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STATE OF HAWAII |
S.D. 2 |
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A BILL FOR AN ACT
RELATING TO MINIMUM WAGE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1.
Chapter 235, Hawaii Revised Statutes, is amended by adding a new section
to part I to be appropriately designated and to read as follows:
"§235- Minimum
wage income tax credit for small businesses. (a)
There shall be allowed to each qualified small business subject to the
tax imposed by this chapter, a credit to offset the increase in minimum hourly
wage that an employer must pay an employee, which shall be deductible from the
net income tax liability of the qualified small business, if any, imposed by
this chapter for the taxable year in which the credit is properly claimed.
(b) The amount of the credit shall be twenty per
cent of the increase of total hourly wages paid to all employees during the
taxable year over the total hourly wages paid in the prior taxable year. The credit claimed by each qualified small
business shall not exceed $50,000 per taxable year.
In the case of a partnership, S
corporation, or other pass-through or disregarded entity, eligibility and
calculation of the tax credit shall be determined at the entity level.
(c) If the tax credit under this section exceeds
the taxpayer's income tax liability, the excess of the tax credit over
liability may be used as a credit against the taxpayer's income tax liability
in subsequent years until exhausted.
Claims for the tax credit under this section, including any amended
claims, shall be filed on or before the end of the twelfth month following the
close of the taxable year for which the credit may be claimed. Failure to comply with the foregoing
provision shall constitute a waiver of the right to claim the tax credit.
(d) The director of taxation:
(1) Shall prepare
any forms necessary to claim a tax credit under this section;
(2) May require a
taxpayer to furnish reasonable information to ascertain the validity of a claim
for credit made under this section; and
(3) May adopt rules
pursuant to chapter 91 to effectuate the purposes of this section.
(e) This section shall not apply to taxable years
beginning after December 31, 2024.
(f) For purposes of this section, "qualified small business" means a taxpayer that has fifty or fewer employees."
SECTION 2. Section 387-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Except as provided in section 387‑9 and this section, every employer shall pay to each employee employed by the employer, wages at the rate of not less than:
(1) $6.25 per hour beginning January 1, 2003;
(2) $6.75 per hour beginning January 1, 2006;
(3) $7.25 per hour beginning January 1, 2007;
(4) $7.75 per hour beginning January 1, 2015;
(5) $8.50 per hour beginning January 1, 2016;
(6) $9.25 per hour
beginning January 1, 2017; [and]
(7) $10.10
per hour beginning January 1, 2018[.];
(8) $12.00 per hour
beginning January 1, 2020; and
(9) $15.00 per hour
beginning January 1, 2023,
provided that each person employed by the State in a full-time position shall be paid a wage at the rate of not less than $17.00 per hour beginning on the effective date of Act , Session Laws of Hawaii 2019."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2050; provided that section 1 shall apply to taxable years beginning after December 31, 2019.
Report Title:
Minimum Wage; Employment; Tax Credit
Description:
Provides an income tax credit for qualifying small businesses to offset the increase in the minimum hourly wage that employers must pay employees. Increases the minimum wage to $12.00 per hour beginning 1/1/2020 and $15.00 per hour beginning 1/1/2023. Establishes a minimum wage of $17.00 per hour for any person employed in a full-time position with the State of Hawaii beginning upon approval of the Act. Tax credit applies to taxable years beginning after 12/31/2019. Effective 7/1/2050. (SD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
