Bill Text: HI SB1323 | 2013 | Regular Session | Introduced

---

Bill Title: Tax Credits; Small Businesses; Full-time Employees

Spectrum: Moderate Partisan Bill (Democrat 8-1)

Status: (Introduced - Dead) 2013-01-28 - Referred to EGH, WAM. [SB1323 Detail]

Download: Hawaii-2013-SB1323-Introduced.html

---

THE SENATE	S.B. NO.	1323
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII

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 be appropriately designated and to read as follows:

     "§235-    Small business tax credit for full-time employees.  (a)  There shall be allowed to each resident taxpayer subject to the tax imposed by this chapter who owns a small business, a tax credit for a portion of the cost of salaries and benefits incurred for every full-time employee employed.  The tax credit 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       per cent of the cost of full-time employee salaries and benefits for the taxable year incurred by the employer of the small business; provided that the amount of the tax credit shall not exceed $           in any taxable year.

     (c)  The tax credit under this section, when claimed by:

     (1)  Either an individual resident taxpayer or a husband and wife filing a joint return that own a small business; or

     (2)  A small business that is a business entity;

may be claimed only once in the taxable year with respect to the small business, regardless of the number of owners under paragraph (1) or the number of shareholders, partners, members, or other owners under paragraph (2); provided that a resident 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 under this section had a joint return been filed.

     (d)  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, including any amended claims, for tax credits 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 shall prepare any forms that may be necessary to claim a credit under this section.  The director may also require the taxpayer to furnish information to ascertain the validity of the claims for credits made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91.

     (f)  For the purposes of this section:

     "Full-time employee" shall have the same meaning as in section 209E-2.

     "Small business" means a for-profit enterprise that is a corporation, partnership, limited liability company, sole proprietorship, or other form of business entity having fewer than one hundred full-time or part-time employees."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2012.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Tax Credits; Small Businesses; Full-time Employees

 

Description:

Establishes a tax credit for small businesses based on the cost of salaries and benefits incurred for all full-time employees employed by the business.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.