Bill Text: HI SB634 | 2011 | Regular Session | Introduced
Bill Title: Vermicomposting; Income Tax Credit
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-01-24 - (S) Referred to ENE, WAM. [SB634 Detail]
Download: Hawaii-2011-SB634-Introduced.html
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THE SENATE |
S.B. NO. |
634 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
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STATE OF HAWAII |
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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 part I to be appropriately designated and to read as follows:
"§235- Vermicomposting; 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 vermicomposting system that is installed and placed in service in the State by a taxpayer during the taxable year. The amount of the tax credit shall be equal to per cent of the actual cost or the cap amount determined in subsection (b), whichever is less; provided that multiple owners of a single 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 system.
In the case of a partnership, S corporation, estate, or trust, the tax credit allowable is for every eligible vermicomposting 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 section 235-110.7(a).
(b) The amount of credit allowed for each eligible vermicomposting system shall not exceed the applicable cap amount, which is determined as follows:
(1) $ for single-family residential property;
(2) $ for multi-family residential property; and
(3) $ for commercial property.
(c) For the purposes of this section:
"Actual cost" means costs related to the vermicomposting systems under subsection (a), including accessories, installation, and initial wormstock.
"Vermicomposting system" means any identifiable facility, equipment, apparatus, or the like that uses composting worms to process organic waste or garbage into compost.
(d) The director of taxation shall prepare any forms that may be necessary to claim a tax credit 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.
(e) 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. 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.
(f) This section shall apply to eligible vermicomposting systems that are installed and placed in service on or after July 1, 2011."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2010.
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INTRODUCED BY: |
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Report Title:
Vermicomposting; Income Tax Credit
Description:
Establishes an income tax credit for taxpayers who purchase and install a vermicomposting system.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
