Bill Text: HI SB800 | 2024 | Regular Session | Amended
Bill Title: Relating To Taxation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-12-11 - Carried over to 2024 Regular Session. [SB800 Detail]
Download: Hawaii-2024-SB800-Amended.html
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THE SENATE |
S.B. NO. |
800 |
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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 TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
"§235- Employers providing child care tax credit. (a) There shall be allowed to each
qualifying taxpayer subject to the taxes imposed by this chapter, an income tax
credit that shall be deductible from the taxpayer's net income tax liability,
if any, imposed by this chapter for the taxable year in which the credit is
properly claimed.
In
the case of a partnership, S corporation, estate, or trust, the tax credit
allowable is for qualified costs incurred by the entity for the taxable
year. The cost upon which the tax credit
is computed shall be determined at the entity level. Distribution and share of the credit shall be
determined pursuant to section 704(b) of the Internal Revenue Code.
(b) The amount of the credit
determined under this section for the taxable year shall be equal to:
(2) Seventy-five per cent of costs incurred in the taxable year by a taxpayer
who is an employer that sponsors or pays for child care services provided at a
location other than at the premises of the employer for the taxpayer's
employees; provided that any tax credit amounts claimed but not used in the
taxable year may be carried forward for five years; provided further that the
total amount of tax credit claimed in each taxable year shall not exceed fifty
per cent of the taxpayer's net income tax liability for the taxable year
computed without regard to any other credits; and
(3) One hundred per cent of the costs of qualified child care property
purchased and acquired by a taxpayer who is an employer to provide child care
facilities on the premises of the employer for their employees; provided
that the tax credit shall be prorated equally over a period of ten years
beginning in the taxable year that the qualified child care property is placed
in service.
(c) Every taxpayer claiming a tax credit under
this section shall submit a written, sworn statement to the department of
taxation identifying:
(1) The names of all employees utilizing child
care services at the premises of the employer;
(2) The name of any child care provider
rendering employer-provided services to the taxpayer's employees; and
(3) Any information as may be required
by the department of human services to ensure that credits are granted only to
the taxpayers who provide or sponsor approved child care pursuant to this
section.
(d) Any credit claimed in any taxable year but
not used in that taxable year may be carried forward for three years from the
close of the taxable year. The sale,
merger, acquisition, or bankruptcy of any taxpayer shall not create new
eligibility for the credit in any succeeding taxpayer.
(e) Every claim, including amended claims, for
the 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 tax credit
may be claimed. Failure to comply with
the foregoing provision shall constitute a waiver of the right to claim the
credit.
(f) For the purposes of the section:
"Employer-provided" refers to
child care services offered on the premises of the employer.
"Employer-sponsored" refers to a contractual arrangement with a child care provider that is paid for by the employer.
"Premises
of the employer" refers to any location in the State that is used by an
employer as a place of business at which the employer provides child care;
provided that if the place of business is impracticable or otherwise unsuitable
for on-site provision of child care, the child care may be provided at another
location that is within a reasonable distance of the employer's place of
business.
"Qualified
child care property" means any property purchased or acquired by the
taxpayer and placed in service during a taxable year for the provision of child
care to the taxpayer's employees.
"Qualified
cost of operation" means reasonable, direct operational costs incurred by
a taxpayer as a result of operating employer-provided child care facility for an
employee or employer-sponsored child care at a child care facility licensed and
approved by the department of human services.
"Qualifying
taxpayer" means an employer who provides child care services on the
premises of the employer or subsidizes the cost of child care for the
employer's employee."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect on January 1, 2050; provided that this Act shall apply to taxable years beginning after December 31, 2022.
Report Title:
Income Tax Credit; Employer-Provided Child Care; Employer-Sponsored Child Care
Description:
Establishes income tax credits for employers who offer employer-provided or employer-sponsored child care for their employees. Effective 1/1/2050. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
