Bill Text: HI SB2222 | 2016 | Regular Session | Introduced
Bill Title: Fire Sprinklers; Tax Credit
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-01-25 - Referred to PSM/HOU, WAM. [SB2222 Detail]
Download: Hawaii-2016-SB2222-Introduced.html
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THE SENATE |
S.B. NO. |
2222 |
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TWENTY-EIGHTH LEGISLATURE, 2016 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to fire sprinklers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that in the state of Hawaii, fire sprinklers are rarely found in one- and two-family dwellings because of their high cost. The average cost of a fire sprinkler with a one-inch water meter and backflow preventer, including installation, is $42,230 in the county of Kauai, $29,748 in the county of Maui, $25,580 in the county of Hawaii, and $18,092 in the city and county of Honolulu. The legislature finds that an incentive is needed to promote the installation of fire sprinklers in one- and two-family dwellings in the State.
The purpose of this Act is to provide an incentive to install an automatic fire sprinkler or automatic fire sprinkler system in any new detached one- or two-family dwelling unit that is in a structure that is used only for residential purposes by establishing a tax credit comprising a percentage of the actual costs of the fire sprinkler or system, including installation.
SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235- Tax credit to promote the installation of fire sprinklers in residences. (a) Any qualifying 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) The tax credit may be claimed for every eligible automatic fire sprinkler or system that is installed and placed in service by the taxpayer during the taxable year in any new detached one- or two-family dwelling unit that is in a structure that is used only for residential purposes. For each automatic fire sprinkler or system, the tax credit that may be claimed shall be twenty-five per cent of the actual cost of the system, including installation costs; provided that multiple owners of a single automatic fire sprinkler or system shall be entitled to a single tax credit; and provided further that the tax credit shall be apportioned between the owners in proportion to their contribution to the cost of the automatic fire sprinkler or system.
(c) 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; and provided that no refunds or payments on account of the tax credit allowed by this section shall be made for amounts less than $1.
(d) The director of taxation shall prepare such forms as may be necessary to claim a credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91.
(e) All of the provisions relating to assessments and refunds under this chapter and under section 231-23(c)(1) shall apply to the tax credit under this section.
(f) Claims for the tax credit under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the taxable year for which the credit may be claimed."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2016, and shall apply to taxable years beginning after December 31, 2016; provided that this Act shall be repealed on June 30, 2026.
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INTRODUCED BY: |
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Report Title:
Fire Sprinklers; Tax Credit
Description:
Establishes a tax credit of 25 percent of the total cost, including installation, of an automatic fire sprinkler or automatic fire sprinkler system in any new detached one- or two-family dwelling unit in a structure used only for residential purposes. Sunsets on June 30, 2026.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
