REPORT TITLE:
Recycling, Tax Credit


DESCRIPTION:
Creates a tax credit for recyclers based on their annual volume
of tonnage reduction.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           1541
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO RECYCLING.



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

 1      SECTION 1.  Recycling is of paramount importance in a state
 
 2 with limited land mass, such as Hawai'i.  We are filling up our
 
 3 dump sites and have few feasible alternatives for large-scale
 
 4 waste disposal.  A clean environment is both necessary to
 
 5 Hawai'i's economic future and to its residents' health.
 
 6      Recycling needs to be encouraged as a viable and economical
 
 7 alternative to waste disposal.  The purpose of this Act is to
 
 8 create a tax credit for recyclers based on their annual volume of
 
 9 tonnage reduction, up to their total cost of recycling the
 
10 materials.
 
11      SECTION 2.  Chapter 235, Hawaii Revised Statutes, is amended
 
12 by adding a new section to be appropriately designated and to
 
13 read as follows:
 
14      "§235-    Recycling credit.  (a)  Each resident individual
 
15 or corporate taxpayer, who files an individual or corporate
 
16 income tax return for a taxable year, may claim a recycling
 
17 credit against the resident taxpayer's individual or corporate
 
18 income tax liability for the taxable year for which the income
 
19 tax return is being filed if that taxpayer is an entity licensed
 

 
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                                     S.B. NO.           1541
                                                        
                                                        

 
 1 to do business in this State that recycles one or more qualified
 
 2 recyclable materials.
 
 3      (b)  The amount of the credit shall be based on the tonnage
 
 4 of materials recycled, as calculated by their pre-recycling
 
 5 delivered scale weight, calculated at $     per ton, during the
 
 6 taxable year for which the income tax return is being filed, but
 
 7 shall not be more than the taxpayer's total costs of recycling
 
 8 the materials.
 
 9      (c)  The tax credit claimed by a resident taxpayer pursuant
 
10 to this section shall be deductible from the resident taxpayer's
 
11 tax liability, if any, for the tax year in which the credit is
 
12 properly claimed.  If the tax credit claimed by a resident
 
13 taxpayer exceeds the amount of income tax payment due from the
 
14 resident taxpayer may at the taxpayer's elections be carried over
 
15 in successive years until exhausted.
 
16      In the case of a partnership, S corporation, estate, or
 
17 trust, the cost upon which the tax credit is computed shall be
 
18 determined at the entity level.
 
19      (d)  For the purposes of this section, 
 
20      "Qualified recyclable material" means one or more of the
 
21 following materials:  plastic, paper waste, ferrous and non-
 
22 ferrous scrap metal, or glass.
 
23      "Recycle" means to reuse a qualified recyclable material or
 

 
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                                     S.B. NO.           1541
                                                        
                                                        

 
 1 to break down the material for reuse.
 
 2      (e)  The director of taxation shall prepare forms as may be
 
 3 necessary to claim a credit under this section.  The director may
 
 4 also require the taxpayer to furnish reasonable information in
 
 5 order that the director may ascertain the validity of the claim
 
 6 for credit made under this section.  The director may adopt rules
 
 7 necessary to effectuate the purposes of this section pursuant to
 
 8 chapter 91.
 
 9      (f)  All claims for tax credits under this section,
 
10 including any amended claims, shall be filed on or before the end
 
11 of the twelfth month following the close of the taxable year for
 
12 which the credits may be claimed.  Failure to comply with the
 
13 foregoing provision shall constitute a waiver of the right to
 
14 claim the credit."
 
15      SECTION 2.  New statutory material is underscored.
 
16      SECTION 3.  This Act, upon its approval, shall apply to
 
17 taxable years beginning after December 31, 1998.
 
18 
 
19                           INTRODUCED BY:  _______________________