Provides a fuel tax credit to small craft vessel owners.

A BILL FOR AN ACT

SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235-   Fuel tax credit for small craft vessel owners. (a) Each owner of a small craft vessel who files an individual or corporate net income tax return for a taxable year may claim an income tax credit under this section against the Hawaii state individual or corporate net income tax.

(b) The tax credit shall be an amount equal to the fuel taxes imposed under section 243-4(a) and paid by the owner during the taxable year.

(c) The tax credit claimed under this section by the owner shall be deductible from the owner's individual or corporate income tax liability, if any, for the tax year in which the credit is properly claimed; provided that a husband and wife filing separate returns for a taxable year for which a joint return could have been made by them shall claim only the tax credit to which they would have been entitled had a joint return been filed. If the tax credit claimed by the owner under this section exceeds the amount of the income tax payments due from the owner, the excess of credit over payments due shall be refunded to the owner; provided that the tax credit properly claimed by an owner who has no income tax liability shall be paid to the owner; and provided further no refunds or payments on account of the tax credit allowed by this section shall be made for amounts less than $1.

(d) The director of taxation shall prepare forms that may be necessary to claim a credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91.

(e) All of the provisions relating to the assessments and refunds under this chapter and under section 231-23(c)(1) shall apply to the tax credit under this section.

(f) Claims for the tax credit under this section, including any amended claims thereof, shall be filed on or before the end of the twelfth month following the taxable year for which the credit may be claimed.

(g) If the small craft vessel owner is a commercial fisher under section 235-110.6, the small craft owner shall claim a fuel tax credit only under section 235-110.6.

(h) As used in this section:

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.