Bill Text: HI HB1709 | 2022 | Regular Session | Amended
Bill Title: Relating To Taxation.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2022-02-15 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) McKelvey excused (1). [HB1709 Detail]
Download: Hawaii-2022-HB1709-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1709 |
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THIRTY-FIRST LEGISLATURE, 2022 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO TAXATION.
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- Whole house water filter system; income tax
credit. (a) There
shall be allowed to each taxpayer subject to the tax imposed under this chapter,
a whole house water filter system income tax credit 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)
In the case of a partnership, S corporation, estate, or trust, the tax
credit allowable is for qualified expenses incurred by the entity for the
taxable year. The expenses upon which
the tax credit is computed shall be determined at the entity level. Distribution and share of credit shall be determined
by rule.
(c)
The whole house water filter system income tax credit shall be equal to
per cent of the qualified expenses of the taxpayer.
(d)
The total amount of tax credits allowed under this section shall not
exceed $5,000,000 for all taxpayers in any taxable year; provided that any
taxpayer who is not eligible to claim the credit in a taxable year due to the
$5,000,000 cap having been exceeded for that taxable year shall be eligible to
claim the credit in the subsequent taxable year.
(e) The director of taxation:
(1) Shall prepare any forms that may be necessary to claim a tax credit under this section;
(2) May require the taxpayer to furnish reasonable information to ascertain the validity of the claim for the tax credit made under this section; and
(3) May adopt rules under chapter 91 necessary to effectuate the purposes of this section.
(f) The credit allowed under this section shall be
claimed against the net income tax liability for the taxable year. 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 refunded to the
taxpayer; provided that the tax credit properly claimed by a taxpayer who has no
income tax liability shall be paid to the taxpayer; provided further that no
refunds or payments on account of the tax credit allowed by this section shall
be made for amounts less than $1. All
claims, including amended claims, for a tax credit under this section 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 credit.
(g) For the purposes of this section:
"Qualified
expenses" means costs that are necessary and directly incurred by the
taxpayer for the purchase and installation of a whole house water filter system.
"Whole house water filter system" means a filtration system that is installed where the main water line enters a home and removes impurities and contaminants from all of the water that is distributed throughout the home."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2021.
Report Title:
Whole House Water Filter System; Income Tax Credit
Description:
Establishes an income tax credit for taxpayers who purchase and install a whole house water filter system. (HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
