Bill Text: HI HB1242 | 2016 | Regular Session | Amended
Bill Title: Fire Sprinklers; Tax Credit
Spectrum: Partisan Bill (Democrat 11-0)
Status: (Introduced - Dead) 2015-12-17 - Carried over to 2016 Regular Session. [HB1242 Detail]
Download: Hawaii-2016-HB1242-Amended.html
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1242 |
|
TWENTY-EIGHTH LEGISLATURE, 2015 |
H.D. 1 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO FIRE SPRINKLERS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that fire sprinklers in one- or two-family dwellings are rare in the State. One reason for the lack of fire sprinklers in one- or two-family dwellings is the high cost of installing fire sprinklers. In Kauai county, the average cost of a fire sprinkler with a one-inch water meter and backflow preventer, including installation, is $42,230. The average cost in Maui county is $29,748. The average cost is $25,580 in Hawaii county and $18,092 in the city and county of Honolulu. The legislature finds that an incentive is needed to promote the installation of fire sprinklers in one- or two-family dwellings in the State.
The purpose of this Act is to provide an incentive to install an automatic fire sprinkler or automatic fire sprinkler system in any new detached one- or two-family dwelling unit that is in a structure which is used only for residential purposes by establishing a tax credit comprising a percentage of the actual costs of the system, including installation.
SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235- Tax credit to promote the installation of fire sprinklers in residences. (a) Any qualifying taxpayer who files an individual income tax return for a taxable year may claim an income tax credit under this section against the Hawaii state individual net income tax.
(b) The tax credit may be claimed for an eligible automatic fire sprinkler or system that is installed and placed in service by the taxpayer during the taxable year in any detached one- or two-family dwelling unit that is in a structure which is used only for residential purposes. For each automatic fire sprinkler or system, the tax credit that may be claimed shall be twenty-five per cent of the actual cost of the system, including installation costs; provided that:
(1) Only the owner occupant of the dwelling unit or the purchaser installing a single automatic fire sprinkler or system in a new structure for residential purposes shall be entitled to a single tax credit;
(2) Only one credit may be claimed per tax map key number; and
(3) The amount of the credit taken shall not exceed $5,000.
(c) The basis of eligible property for depreciation or accelerated cost recovery system purposes for state income taxes shall be reduced by the amount of credit allowable and claimed. No deduction shall be allowed for that portion of otherwise deductible qualified costs for which a credit is claimed under this section.
(d) If the tax credit claimed by the taxpayer under this section exceeds the amount of the income tax payments due from the taxpayer, the excess of credit over payments due shall be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted.
(e) The director of taxation shall prepare such forms as may be necessary to claim a credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91.
(f) All of the provisions relating to assessments and refunds under this chapter and under section 231-23(c)(1) shall apply to the tax credit under this section.
(g) 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 taxable year for which the credit may be claimed."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2050, and shall apply to taxable years beginning after December 31, 2015; provided that this Act shall be repealed on June 30, 2025.
Report Title:
Fire Sprinklers; Tax Credit
Description:
Establishes a tax credit of 25 per cent of the actual cost, including installation, of an automatic fire sprinkler or automatic fire sprinkler system in any detached one- or two-family dwelling unit in a structure used only for residential purposes. Sunsets on June 30, 2025. (HB1242 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
