HOUSE OF REPRESENTATIVES	H.B. NO.	561
THIRTY-SECOND LEGISLATURE, 2023		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO TAX CREDITS.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The purpose of this Act is to require that new income tax credits include a five-year sunset or a gradual reduction over a three-year period beginning with the sixth year of the credit.

     SECTION 2.  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-     Tax credits; generally.  Any income tax credit established or renewed under this chapter after December 31, 2023, shall include either:

     (1)  A five-year sunset date; or

     (2)  Beginning with the sixth year of the credit, an annual one-third reduction in the credit amount allowed to be claimed, over a three-year period."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000.

 

Report Title:

Income Tax Credits; Sunset; Annual Reduction

 

Description:

Requires that income tax credits established or renewed after 12/31/2023 include a five-year sunset or an annual one-third reduction beginning with the sixth year of the credit.  Effective 7/1/3000.  (HD1)

 

 

 

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