Bill Text: HI SB98 | 2013 | Regular Session | Introduced
Bill Title: Reduction of Tax Liability; Low Income Taxpayers
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Engrossed - Dead) 2013-04-23 - Conference committee meeting to reconvene on 04-26-13 3:00PM in conference room 309. [SB98 Detail]
Download: Hawaii-2013-SB98-Introduced.html
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THE SENATE |
S.B. NO. |
98 |
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TWENTY-SEVENTH LEGISLATURE, 2013 |
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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 be appropriately designated and to read as follows:
"§235- Low-income tax credit. (a) There shall be allowed to each taxpayer subject to the tax imposed by this chapter, a tax credit to reduce or eliminate the state income tax liability for low-income taxpayers. After completing the income tax calculations required by this chapter, taxpayers with federal adjusted gross income below the federal poverty guidelines and with an income tax liability shall receive a credit that eliminates their income tax liability. Taxpayers with federal adjusted gross income between one hundred and one hundred twenty-five per cent of the federal poverty guidelines and with an income tax liability shall receive a credit that reduces their income tax liability by fifty per cent. Taxpayers with income above one hundred twenty-five per cent of the federal poverty guidelines shall be ineligible for the credit.
(b) For purposes of this section:
"Federal poverty guidelines" means the guidelines set forth by the United States Department of Health and Human Services each year for Hawaii.
(c) All claims for a 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 tax credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the tax credit.
(d) The director of taxation shall prepare any forms that may be necessary to claim a credit under this section. The director may also require the taxpayer to furnish information to ascertain the validity of the claim for the tax credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2012.
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INTRODUCED BY: |
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Report Title:
Tax Credit; Poor; Federal Poverty Guidelines
Description:
Reduces the tax liability for low-income people by creating a tax credit that will reduce a person's income tax to zero if their federal adjusted gross income falls below federal poverty guidelines. Reduces a person's income tax liability by fifty per cent if the person's federal adjusted gross income falls between 100 and 125 percent of federal poverty guidelines.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
