Report Title:
Tax Credit; Education
Description:
Provides a tax credit not to exceed $250 for donations made to public schools.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
989 |
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TWENTY-THIRD LEGISLATURE, 2005 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to tax credits.
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- Public school tax credit. (a) There shall be allowed to each taxpayer who is not claimed or is not otherwise eligible to be claimed as a dependent by another taxpayer for federal or Hawaii state individual income tax purposes, who files a net income tax return for a taxable year, a public school tax credit that shall be deductible from the taxpayer's net income tax liability imposed by this chapter for the taxable year in which the tax credit is properly claimed.
(b) The amount of the tax credit shall be equal to the amount of a donation made by the taxpayer to a public school in this State of the taxpayer's choice; provided that:
(1) The total amount of the tax credit shall not exceed $250;
(2) The taxpayer may make a donation to more than one public school;
(3) A husband and wife filing separate returns for a taxable year for which a joint return could have been filed by them shall claim only the tax credit to which they would have been entitled had a joint return been filed; and
(4) No refund or payment on account of the tax credit allowed by this section shall be made for an amount less than $1.
(c) To qualify for the income tax credit, the taxpayer shall be in compliance with all applicable federal, state, and county statutes, rules, and regulations.
(d) If the tax credit under this section exceeds the taxpayer's net income tax liability under this chapter, any excess of the tax credit may be used as a credit against the taxpayer's income tax liability in subsequent taxable years until exhausted.
(e) Every claim, including amended claims, for the tax credit under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the tax credit may be claimed. Failure to meet the filing requirements of this subsection shall constitute a waiver of the right to claim the tax credit.
(f) The director of taxation:
(1) Shall prepare such forms as may be necessary to claim a tax credit under this section;
(2) May require proof of the claim for the tax credit; and
(3) May adopt rules pursuant to chapter 91 to effectuate the purposes of this section.
(g) The department of taxation shall report to the legislature annually, no later than twenty days prior to the convening of every regular session, on the number of taxpayers claiming the tax credit and the total cost of the tax credit to the State during the past year.
(h) As used in this section, the term "public school" has the same meaning as "public schools" defined in section 302A-101."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2004.
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INTRODUCED BY: |
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