Bill Text: HI HB1819 | 2022 | Regular Session | Introduced
Bill Title: Relating To Taxation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-01-26 - Referred to HHH, FIN, referral sheet 2 [HB1819 Detail]
Download: Hawaii-2022-HB1819-Introduced.html
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1819 |
THIRTY-FIRST LEGISLATURE, 2022 |
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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 III to be appropriately designated and to read as follows:
"§235- Child tax credit. (a)
Any 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) Each
individual taxpayer may claim a tax credit for each qualifying child of the taxpayer
in accordance with the table below; provided that a husband and wife filing
separate tax returns for a taxable year for which a joint return could have
been filed by them shall claim only the tax credit to which they would have
been entitled had a joint return been filed.
Adjusted gross income Credit per qualifying child
for
taxpayers filing
a single return and
married individuals
filing separate
returns
Not over $35,000 $500
Over
$35,000 but $250
not over $75,000
Over $75,000 $ 0.
Adjusted gross income Credit per qualifying child
for
heads of household
Not over $55,000 $500
Over
$55,000 but $250
not over $107,500
Over
$107,500 $ 0.
Adjusted gross income Credit per qualifying child
for
married couples
filing
joint returns
and
surviving spouses
Not over $75,000 $500
Over
$75,000 but $250
not over $140,000
Over $140,000 $ 0.
This credit is available only to Hawaii
residents. Any part-year resident
entitled to a credit under this section shall receive a proportional credit
reflecting the part of the year in which the part-year resident was domiciled
in Hawaii.
(c) In the case of divorced parents or parents who
do not live together, if the qualifying child is in the custody of one or both
of the child's parents for more than one-half of a calendar year, the child is
the qualifying child of the custodial parent for the taxable year beginning during
the calendar year. However, the child
may be the qualifying child of the noncustodial parent if either of the
following requirements are met:
(1) A court of competent jurisdiction has unconditionally awarded, in writing, the noncustodial parent the tax credit authorized under this section and the noncustodial parent attaches a copy of the court order to the noncustodial parent's income tax return for the taxable year; or
(2) The custodial parent signs a written declaration that the custodial parent shall not claim the credit of this section with respect to the child for any taxable year beginning in the calendar year and the noncustodial parent attaches the written declaration to the noncustodial parent's income tax return for the taxable year beginning during the calendar year.
(d) The credit allowed under this section shall be
claimed against the net income tax liability for the taxable year. 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 net income tax liability in
subsequent years until exhausted. 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.
(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) As used in this section, "qualifying child" has the meaning as defined in section 24(c) of the Internal Revenue Code."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2021.
INTRODUCED BY: |
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Report Title:
Income Tax; Child Tax Credit
Description:
Establishes a nonrefundable state child tax credit.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.