Bill Text: HI SB310 | 2020 | Regular Session | Introduced
Bill Title: Relating To The Earned Income Tax Credit.
Spectrum: Strong Partisan Bill (Democrat 12-1)
Status: (Introduced - Dead) 2019-12-01 - Carried over to 2020 Regular Session. [SB310 Detail]
Download: Hawaii-2020-SB310-Introduced.html
|
THE SENATE |
S.B. NO. |
310 |
|
THIRTIETH LEGISLATURE, 2019 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
Relating to the Earned Income Tax Credit.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that Act 107, Session Laws of Hawaii 2017, established a nonrefundable earned income tax credit (EITC). However, the legislature notes that the federal EITC is refundable, and that two-thirds of families in Hawaii who are eligible for Hawaii's EITC are not benefitting because the tax credit is nonrefundable. A refundable tax credit means that a person's income tax can be reduced to zero, and any unused credit is refunded. The EITC is designed as an anti-poverty program to help low-income families, and making the State's EITC refundable would assist a greater number of families in need.
Accordingly, the purpose of this Act is to make Hawaii's EITC refundable.
SECTION 2. Section 235-55.75, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(a) Each qualifying
individual taxpayer may claim a [nonrefundable] refundable earned
income tax credit. The tax
credit, for the appropriate taxable year, shall be twenty per cent of the
federal earned income tax credit allowed and properly claimed under section 32
of the Internal Revenue Code and reported as such on the individual's federal
income tax return."
2. By amending subsection (d) to read:
"(d) The credit allowed under this section shall
be claimed against the net income tax liability for the taxable year. [If the tax credit under this section
exceeds the taxpayer’s income tax liability, the excess of the tax credit over
liability may be used as a credit against the taxpayer’s net income tax
liability in subsequent years until exhausted.] If the tax credits
claimed by a taxpayer exceed the amount of income tax payment due from the
taxpayer, the excess of credits over payments due shall be refunded to the
taxpayer; provided that tax credits properly claimed by an individual who has
no income tax liability shall be paid to the individual; provided further that
no refunds or payment on account of the tax credits allowed by this section
shall be made for amounts less than $1.
All claims, including 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 credit may be claimed. Failure to comply with the foregoing provision
shall constitute a waiver of the right to claim the credit."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall, upon its approval, apply to taxable years beginning after December 31, 2018.
|
INTRODUCED BY: |
_____________________________ |
|
|
|
Report Title:
Earned Income Tax Credit; Refundable Tax Credit; Department of Taxation
Description:
Changes the earned income tax credit from a nonrefundable tax credit to a refundable tax credit.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
