Bill Text: HI HB2678 | 2012 | Regular Session | Introduced
Bill Title: Earned Income Tax Credit
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-01-25 - (H) Referred to HUS, FIN, referral sheet 8 [HB2678 Detail]
Download: Hawaii-2012-HB2678-Introduced.html
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
2678 |
|
TWENTY-SIXTH LEGISLATURE, 2012 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
relating to earned income tax credit.
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 be appropriately designated and to read as follows:
"§235- Earned income tax credit. (a) Each resident individual taxpayer who files an individual income tax return for a taxable year and who is not claimed or is not otherwise eligible to be claimed as a dependent by another taxpayer for income tax purposes may claim a nonrefundable earned income tax credit. The tax credit, for the appropriate taxable year, shall be equal to twenty per cent of the earned income credit allowed under Section 32 of the Internal Revenue Code and reported as such on the resident individual's federal income tax return.
(b) In the case of a part-year resident, the tax credit shall equal the amount of the tax credit calculated in subsection (a) multiplied by the ratio of adjusted gross income attributed to this State to the entire adjusted gross income computed without regard to source in the State pursuant to section 235-5.
(c) For purposes of claiming the tax credit allowed by this section, a resident individual taxpayer shall use the same filing status (i.e., "married filing jointly", "head of household", "qualifying widow(er)", or "single") on the taxpayer's Hawaii tax return as used on the taxpayer's federal return for the taxable year. In the case of a husband and wife filing separately, the credit allowed may be applied against the tax of either, or divided between them, as they elect.
If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of tax credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted.
All claims including any 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 tax credit may be claimed; provided that failure to comply shall constitute a waiver of the right to claim the tax credit.
(d) The director of taxation:
(1) Shall prepare such forms as may be necessary to claim a tax credit under this section;
(2) May require proof of the claim for the tax credit;
(3) Shall alert eligible taxpayers of the tax credit using appropriate and available data;
(4) Shall prepare an annual report containing:
(A) The number of credits granted pursuant to this section for the prior calendar year;
(B) The total amount of credits granted pursuant to this section; and
(C) The average value of the credits granted pursuant to this section to taxpayers whose earned income falls within various income ranges; and
(5) May adopt rules pursuant to chapter 91 to effectuate this section."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval and shall apply to taxable years beginning after December 31, 2012.
|
INTRODUCED BY: |
_____________________________ |
|
|
|
Report Title:
Earned Income Tax Credit
Description:
Establishes a state earned income tax credit for taxable years beginning after December 31, 2012.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
