Bill Text: HI SB2654 | 2022 | Regular Session | Introduced
Bill Title: Relating To Water Rationing.
Spectrum: Partisan Bill (Democrat 11-0)
Status: (Engrossed - Dead) 2022-03-10 - Referred to WAL, CPC, FIN, referral sheet 24 [SB2654 Detail]
Download: Hawaii-2022-SB2654-Introduced.html
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THE SENATE |
S.B. NO. |
2654 |
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THIRTY-FIRST LEGISLATURE, 2022 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to water rationing.
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- Water rationing; income tax credit. (a) Each individual or corporate
taxpayer that files an individual or corporate net income tax return for a taxable
year may claim a tax credit under this section against the Hawaii state individual
or corporate net income tax. The tax credit
may be claimed for every eligible water rationing system that is installed and placed
in service in the State by a taxpayer during the taxable year. The tax credit may be claimed as follows:
(1) For each rain barrel system: per cent of the
actual cost or the cap amount determined in subsection (b);
(2) For each water catchment
system: per
cent of the actual cost or the cap amount determined in subsection (b), whichever
is less;
(3) For home water system efficiency upgrades: per cent of the
actual cost or the cap amount determined in subsection (b), whichever is less; and
(4) Dual-use piping systems: per cent of the
actual cost or the cap amount determined in subsection (b), whichever is less;
provided further that multiple owners of a single system shall be
entitled to a single tax credit; provided further that the tax credit shall be apportioned
between the owners in proportion to their contribution to the cost of the system.
In the case of a partnership, S corporation,
estate, or trust, the tax credit allowable is for every eligible water rationing
system that is installed and placed in service in the State by the entity. The cost upon which the tax credit is computed
shall be determined at the entity level.
Distribution and share of credit shall be determined pursuant to administrative
rule.
(b)
The amount of credit allowed for each eligible water rationing system shall
not exceed the applicable cap amount, which is determined as follows:
(1) For rain barrel
systems, the cap amounts shall be:
(A) $
per system for single-family residential property;
(B) $
per unit per system for multi-family residential property; and
(C) $
per system for commercial property;
(2) For water catchment
systems, the cap amounts shall be:
(A) $
per system for single-family residential property;
(B) $
per unit per system for multi-family residential property; and
(C) $
per system for commercial property; and
(3) For home water system
efficiency upgrades, the cap amounts shall be:
(A) $
per system for single-family residential property;
(B) $
per unit per system for multi-family residential property; and
(C) $
per system for commercial property; and
(4) For dual-use piping
systems, the cap amounts shall be:
(A) $
per system for single-family residential property;
(B) $
per unit per system for multi-family residential property; and
(C) $
per system for commercial property.
(c)
For the purposes of this section:
"Actual cost" means costs related
to water rationing systems under subsection (a), including accessories and installation,
but not including the cost of consumer incentive premiums unrelated to the operation
of the system or offered with the sale of the system and costs for which another
credit is claimed under this chapter.
"Household use" means any use to
which heated water is commonly put in a residential setting, including commercial
application of those uses.
"Water rationing system" means
a new system that reduces the amount of water used by a residential or commercial
entity.
(d)
For taxable years beginning after December 31, 2005, the dollar amount of
any utility rebate shall be deducted from the cost of the qualifying system and
its installation before applying the state tax credit.
(e)
The director of taxation shall prepare any forms that may be necessary to
claim a tax credit under this section, including forms identifying the system type
of each tax credit claimed under this section.
The director may also require the taxpayer to furnish reasonable information
to ascertain the validity of the claim for credit made under this section and may
adopt rules necessary to effectuate the purposes of this section pursuant to chapter
91.
(f)
If the tax credit under this section exceeds the taxpayer's income tax liability,
the excess of the credit over liability may be used as a credit against the taxpayer's
income tax liability in subsequent years until exhausted, unless otherwise elected
by the taxpayer pursuant to subsection (g).
All claims for the tax credit under this section, including amended claims,
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 this subsection shall constitute
a waiver of the right to claim the credit.
(g) Notwithstanding subsection (f), for any water
rationing system, an individual taxpayer may elect to have any excess of the credit
over payments due refunded to the taxpayer, if:
(1) All of the taxpayer's
income is exempt from taxation under section 235-7(a)(2) or (3); or
(2) The taxpayer's adjusted
gross income is $20,000 or less (or $40,000 or less if filing a tax return as married
filing jointly);
provided that tax credits properly claimed by a taxpayer
who has no income tax liability shall be paid to the taxpayer; and provided further
that no refund on account of the tax credit allowed by this section shall be made
for amounts less than $1.
A husband and wife who do not file
a joint tax return shall only be entitled to make this election to the extent that
they would have been entitled to make the election had they filed a joint tax return.
The election required by this subsection shall be made in a manner prescribed by the director on the taxpayer's return for the taxable year in which the system is installed and placed in service. A separate election may be made for each separate system that generates a credit. An election once made is irrevocable.
(h) To the extent feasible, using existing resources
to assist the water-rationing policy review and evaluation, the department shall
assist with data collection on the following for each taxable year:
(1) The number of water
rationing systems that have qualified for a tax credit during the calendar year
by:
(A) System
type; and
(B) Taxpayer
type (corporate and individual); and
(2) The total cost of
the tax credit to the State during the taxable year by:
(A) System
type; and
(B) Taxpayer
type.
(i) This section shall apply to water rationing systems that are installed and placed in service on or after July 1, 2022."
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, 2021.
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INTRODUCED BY: |
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Report Title:
Income Tax Credit; Water Rationing Systems
Description:
Establishes an income tax credit for water rationing systems.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
