THE SENATE

S.B. NO.

662

THIRTY-FIRST LEGISLATURE, 2021

S.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO TAX CREDITS.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The purpose of this Act is to require that new income tax credits include a five-year sunset or a gradual reduction over a three-year period.

     SECTION 2.  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-    Tax credits; generally.  Any income tax credit established or renewed under this chapter after December 31, 2021, shall include either:

     (1)  A five-year sunset date; or

     (2)  Beginning with the sixth year of the credit, a one-third annual reduction in the credit amount allowed to be claimed, over a three-year period."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2021.


 


 

Report Title:

Income Tax Credits; Sunset; Annual Reduction

 

Description:

Requires that new income tax credits established or renewed after 12/31/2021 include a 5-year sunset or an annual reduction.  (SD1)

 

 

 

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