Bill Text: HI HB1327 | 2024 | Regular Session | Amended
Bill Title: Relating To Tax Credits.
Spectrum: Moderate Partisan Bill (Democrat 23-3)
Status: (Engrossed - Dead) 2023-12-11 - Carried over to 2024 Regular Session. [HB1327 Detail]
Download: Hawaii-2024-HB1327-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1327 |
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THIRTY-SECOND LEGISLATURE, 2023 |
H.D. 2 |
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STATE OF HAWAII |
S.D. 1 |
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A BILL FOR AN ACT
RELATING TO TAX CREDITS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that previous surveys conducted by the Hawaii State Teachers Association found that forty-seven per cent of Hawaii's educators cited personal expenditures of between $250 and $500 each year on classroom supplies, with many claiming expenditures in excess of $1,000. The legislature further finds that a 2022 study ranked Hawaii as the worst state in the nation for teachers. Moreover, according to numerous studies of teacher compensation, Hawaii's public school teachers receive the lowest salaries in the nation when adjusted for cost of living. Therefore, when teachers are forced to purchase classroom supplies with their own personal funds because of inadequate school funding, they face a disproportionately adverse financial impact in comparison to their national peers.
The purpose of this Act is to provide teachers and certain other school personnel with financial support for classroom expenses by establishing a state income tax credit for teachers to offset personal expenditures on school and classroom supplies.
SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235- Qualified expenses; educational supplies;
tax credit. (a)
There shall be allowed to each qualified taxpayer subject to the tax
imposed by this chapter a tax credit for qualified expenses of the taxpayer
that shall be deductible from the taxpayer's net income tax liability, if any,
imposed by this chapter for the taxable year in which the credit is properly
claimed.
(b) The amount of the tax credit shall be equal
to the amounts expended for qualified expenses in a taxable year; provided that
the credit shall not exceed $
per taxable year.
(c) If the tax credit under this section exceeds
the taxpayer's net income tax liability, the excess of credit over liability
may be used as a tax credit against the taxpayer's net income tax liability in
subsequent years until exhausted. All
claims for a tax credit under this section, including amended claims, shall be
filed on or before the end of the twelfth month following the close of the
taxable year for which the tax credit may be claimed. Failure to comply with the foregoing
provision shall constitute a waiver of the right to claim the tax credit.
(d) No other tax credit or deduction shall be
claimed under this chapter for the qualified expenses used to properly claim a
tax credit under this section for the taxable year.
(e) The director of taxation:
(1) Shall prepare
any forms that may be necessary to claim a credit under this section;
(2) May require the
taxpayer to furnish reasonable information to ascertain the validity of the
claim for credit made under this section; and
(3) May adopt rules
necessary to effectuate the purposes of this section pursuant to chapter 91.
(f) For purposes of this section:
"Qualified expenses"
means expenses paid or incurred by a qualified taxpayer who incurs the expenses
in connection with:
(1) Books;
(2) Supplies, other
than athletic supplies for courses of instruction in health or physical
education;
(3) Computer
equipment, including related software and services; and
(4) Supplementary
materials used by the qualified taxpayer in the classroom.
"Qualified taxpayer" means, with respect to any taxable year, an
individual who is employed:
(2) As a teacher or teacher assistant as
part of a head start program,
in a school for at least nine hundred hours during a school year. "Qualified taxpayer" includes a classroom teacher and special education teacher."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on June 30, 3000, and shall apply to taxable years beginning after December 31, 2022.
Report Title:
Educational Supplies; Tax Credit; Schools; Educators
Description:
Establishes a state income tax credit for qualified expenses incurred by certain individuals employed by the Department of Education, Hawaii state public library system, or as part of a head start program in a school. Effective 6/30/3000. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
