REPORT TITLE:
Elder Care; Tax Credit


DESCRIPTION:
Provides a $300 income tax credit to any taxpayer who cares for
an elderly relative under certain conditions.  Applies to taxable
years beginning after 12/31/99.  (HB2336 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2336
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO INCOME TAX CREDITS FOR ELDERLY AT-HOME CARE. 


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

 1      SECTION 1.  Chapter 235, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "§235-    Elder at-home long-term care tax credit.  (a)
 
 5 Each resident taxpayer, who files an individual income tax return
 
 6 for a taxable year, and who is not claimed or is not otherwise
 
 7 eligible to be claimed as a dependent by another taxpayer for
 
 8 federal or Hawaii state individual income tax purposes, may claim
 
 9 a tax credit for the long-term care of elder relatives in the
 
10 home against the taxpayer's individual income tax liability;
 
11 provided that a husband and wife filing separate returns for a
 
12 taxable year for which a joint return could have been filed by
 
13 them shall claim only the tax credit to which they would have
 
14 been entitled had a joint return been filed; and provided that a
 
15 resident individual who has no income or no income taxable under
 
16 this chapter and who is not claimed or is not otherwise eligible
 
17 to be claimed as a dependent by a taxpayer for federal or Hawaii
 
18 state individual income tax purposes may also claim the tax
 
19 credit provided in this section.
 

 
Page 2                                                     2336
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      (b)  Each individual taxpayer may claim a tax credit for the
 
 2 long-term care of an elder relative in the home as provided in
 
 3 this section in an amount equal to $300.  In order to claim a tax
 
 4 credit under this section, the elder relative shall:
 
 5           (1)  Be sixty-five years of age or older;
 
 6           (2)  Be totally disabled or chronically ill and
 
 7                otherwise would have to be cared for in a long-
 
 8                term care facility including intermediate care or
 
 9                skilled nursing facilities or nursing homes; and
 
10           (3)  Have been cared for and maintained in the
 
11                taxpayer's residence for a period of not less than
 
12                twenty-nine days.
 
13      (c)  In order to claim a tax credit under this section, no
 
14 taxpayer shall:
 
15           (1)  Have placed the elderly relative for whom the tax
 
16                credit is claimed in any long-term intermediate
 
17                care or skilled nursing facility or nursing home
 
18                for a period of more than twenty-nine days during
 
19                the taxable year;
 
20           (2)  Operate any type of nonprofit or for-profit care
 
21                service for handicapped or elder individuals; or
 
22           (3)  Claim a tax credit under section 235-55.6.
 

 
 
 
Page 3                                                     2336
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      (d)  As used in this section, "relative" means any person
 
 2 related to the taxpayer or the taxpayer's spouse as a
 
 3 grandparent, parent, son, daughter, aunt, uncle, brother, sister,
 
 4 or first cousin.
 
 5      (e)  The tax credit claimed by a resident taxpayer pursuant
 
 6 to this section shall be deductible from the resident taxpayer's
 
 7 individual income tax liability, if any, for the tax year in
 
 8 which the credit is properly claimed.  If the tax credit claimed
 
 9 by a resident taxpayer exceeds the amount of income tax payment
 
10 due from the resident taxpayer, the excess of credit over
 
11 payments due shall be refunded to the resident taxpayer; provided
 
12 that:
 
13           (1)  A tax credit properly claimed by a resident
 
14                individual who has no income tax liability shall
 
15                be paid to the resident individual; and
 
16           (2)  No refund or payment on account of the tax credit
 
17                allowed by this section shall be made for amounts
 
18                less than $1.
 
19      (f)  All claims for a tax credit under this section,
 
20 including any amended claims, shall be filed not later than the
 
21 end of the twelfth month following the close of the taxable year
 
22 for which the credit may be claimed.  Failure to comply with the
 
23 foregoing provision shall constitute a waiver of the right to
 
24 claim the credit.
 

 
Page 4                                                     2336
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      (g)  The director of taxation shall prepare the appropriate
 
 2 forms to be used under this section, may require proof of the
 
 3 claim for tax credit, and may adopt appropriate rules under
 
 4 chapter 91."
 
 5      SECTION 2.  New statutory material is underscored.
 
 6      SECTION 3.  This Act upon its approval shall apply to
 
 7 taxable years beginning after December 31, 1999.