Bill Text: HI SB709 | 2024 | Regular Session | Amended
Bill Title: Relating To An Income Tax Credit.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2023-12-11 - Carried over to 2024 Regular Session. [SB709 Detail]
Download: Hawaii-2024-SB709-Amended.html
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THE SENATE |
S.B. NO. |
709 |
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THIRTY-SECOND LEGISLATURE, 2023 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO AN INCOME TAX CREDIT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that Hawaii is susceptible to property loss due to hurricanes, tropical storms, and strong winds. The best long-term solution for reducing potential damage is the statewide use of wind resistive devices. The legislature also finds that residents of the State must inspect, repair, and reinforce their residences every year to prepare for the possibility of a hurricane making landfall. The inspections, repairs, and reinforcement of residences consume needed resources from homeowners' budgets but result in homeowners having more hurricane resistant residences. These resistance measures reduce hurricane damage repair costs and may qualify homeowners for much-needed hurricane insurance premium credits.
The legislature further finds that there should be an income tax credit to certain property owners for the installation of wind resistive devices approved by the insurance commissioner that may lessen the severity of property loss from strong winds. This incentive will serve a public purpose by protecting the health, safety, property, and welfare of Hawaii residents. The program will also stimulate economic growth and activity in the State through the creation of business and employment opportunities for the sale and installation of wind resistive devices.
The purpose of this Act is to establish an income tax credit to financially assist qualified homeowners with the installation of approved wind resistive devices for hurricane preparedness of their homes.
SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235- Wind
resistance retrofit tax credit. (a) There
shall be allowed to each individual who is not eligible to be claimed as a
dependent for federal or state income taxes by another and who files an individual
income tax return for a taxable year, a one-time nonrefundable wind resistance
retrofit tax credit that shall be deductible from the individual's net income
tax liability imposed by this chapter.
(b) The amount of the nonrefundable tax credit shall
be $ or the actual costs
incurred by the individual for the wind resistance retrofit project, whichever
is less, including the costs of construction to make a taxpayer's primary
residence meet specified wind resistance standards determined pursuant to
subsection (c); provided that no payment on account of the tax credit allowed
by this section shall be made for amounts less than $1.
(c) The standards for eligibility shall be
determined by the insurance commissioner or the commissioner's designee by
rule. The taxpayer shall apply to the
insurance division of the department of commerce and consumer affairs to
pre-certify eligible retrofit credit costs before retrofit work begins. The insurance division shall cap the number
of credits certified to for each year of
eligibility. The department of commerce
and consumer affairs may adopt rules pursuant to chapter 91 to effectuate the
purpose of this subsection.
(d) 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 properly claim the credit shall
constitute a waiver of the right to claim the credit.
(e) If the tax credit under this section exceeds
the individual's net income tax liability, any excess of the tax credit may be
used as a credit against the individual's income tax liability in subsequent
taxable years until exhausted.
(f) No individual that claims the tax credit under
this section shall claim any other credit for the same expenses or costs.
(g) The director of taxation:
(1) Shall prepare
any forms that may be necessary to claim a tax credit under this section;
(2) May require
proof of the claim for the tax credit; and
(3) May adopt rules pursuant to chapter 91 to effectuate the purposes of this section."
SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for the establishment, implementation, and administration of the wind resistance retrofit tax credit program.
The sums appropriated shall be expended by the insurance division of the department of commerce and consumer affairs for the purposes of this Act.
SECTION 4. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2050; provided that section 2 of this Act shall apply to taxable years beginning after December 31, 2023, and shall repeal on January 1, 2029; provided further that section 3 of this Act shall take effect on July 1, 2050.
Report Title:
Income Tax Credit; Wind Resistance Retrofit; Hurricane Preparedness; Insurance; DCCA; DOTAX
Description:
Establishes a nonrefundable individual income tax credit for expenses paid to retrofit a residence with wind resistive devices. Appropriates funds to the Insurance Division of the Department of Commerce and Consumer Affairs for the establishment, implementation, and administration of the wind resistance retrofit tax credit program. Effective 7/1/2050. Repeals 1/1/2029. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
