Report Title:
Tax Credit; Teacher Income
Description:
Provides a tax credit to teachers based on experience.
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THE SENATE |
S.B. NO. |
520 |
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TWENTY-FIRST LEGISLATURE, 2001 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO TEACHERS.
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- Teacher income tax credit. (a) For the purposes of this section:
"Qualifying educational institution" means any public school as defined in section 302A-lOl providing education for kindergarten to grade twelve, or any part thereof.
"Teacher" means a taxpayer who:
(1) Holds a license or credential issued by the Hawaii teacher standards board under chapter 302A or by the department of education under any predecessor statute; or
(2) Meets requirements equivalent to those required for a license or credential;
and whose primary responsibilities involve providing instructional services in a classroom at a qualifying educational institution.
(b) There shall be allowed to each teacher, an income tax credit that may be claimed against the teacher's net individual income tax to be determined as follows:
(1) For any teacher who has, as of the last day of the taxable year in which the tax credit is claimed:
(A) Completed at least two but less then five years of service as a teacher, the tax credit shall be $200;
(B) Completed at least five but less than ten years of service as a teacher, the tax credit shall be $400;
(C) Completed at least ten but less than fifteen years as a teacher, the tax credit shall be $600;
(D) Completed fifteen years or more of service as a teacher, the tax credit shall be $1,000.
(c) For the purposes of determining years of service performed as a teacher in a qualified educational institution in another state, the teacher shall qualify for each year the teacher in that state was:
(1) Licensed or credentialed by a public education agency; and
(2) Teaching in a qualifying educational institution.
(d) The tax credits shall be claimed against the taxpayer’s individual net income tax for the tax year in which the credits are properly claimed. In the event the allowed tax credits exceed the amount of the income tax payments due from the taxpayer, the excess of credits over payments due shall be refunded to the taxpayer; provided that no refunds or payments on account of the tax credits allowed by this section shall be made for amounts less than $1.
(e) The director of taxation shall prepare and prescribe the appropriate form or forms to be filed to claim the credit, and may require proof of the claim for the tax credits. The director of taxation may adopt rules pursuant to chapter 91 to effectuate this section.
(f) Claims for tax credits 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."
SECTION 2. New statutory material is underscored.
SECTION 3
. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2000.|
INTRODUCED BY: |
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