Report Title:
Tax Credit; Low-Income Household Renters
Description:
Changes the definition of "adjusted gross income" to coincide with the federal adjusted gross income and increases the qualifying adjusted gross income level from $30,000 to $35,000.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1721 |
|
TWENTY-THIRD LEGISLATURE, 2005 |
||
|
STATE OF HAWAII |
||
|
|
A BILL FOR AN ACT
RELATING TO LOW-INCOME HOUSEHOLD RENTERS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 235-55.7, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(a) As used in this section:
(1) "Adjusted gross income" [is defined by section 235-1.] means the federal adjusted gross income reported by the taxpayer claiming the tax credit under this section.
(2) "Qualified exemption" includes those exemptions permitted under this chapter; provided that a person for whom exemption is claimed has physically resided in the State for more than nine months during the taxable year; and provided that multiple exemption shall not be granted because of deficiencies in vision, hearing, or other disability.
(3) "Rent" means the amount paid in cash in any taxable year for the occupancy of a dwelling place which is used by a resident taxpayer or the resident taxpayer's immediate family as the principal residence in this State. Rent is limited to the amount paid for the occupancy of the dwelling place only, and is exclusive of charges for utilities, parking stalls, storage of goods, yard services, furniture, furnishings, and the like. Rent shall not include any rental claimed as a deduction from gross income or adjusted gross income for income tax purposes, any ground rental paid for use of land only, and any rent allowance or subsidies received."
2. By amending subsection (c) to read:
"(c) Each taxpayer with an adjusted gross income of less than [$30,000] $35,000 who has paid more than $1,000 in rent during the taxable year for which the credit is claimed may claim a tax credit of $50 multiplied by the number of qualified exemptions to which the taxpayer is entitled; provided each taxpayer sixty-five years of age or over may claim double the tax credit; and provided that a resident individual who has no income or no income taxable under this chapter may also claim the tax credit as set forth in this section."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval, and shall apply to taxable years beginning after December 31, 2004.
|
INTRODUCED BY: |
_____________________________ |