Provides a one-time $500 tax credit to teachers that complete a training program and commit to teaching five consecutive semesters in a critical subject area.

A BILL FOR AN ACT

SECTION 1. (a) There shall be allowed to each eligible 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 one-time tax credit that shall be deductible from the eligible taxpayer's net income tax liability imposed by chapter 235, Hawaii Revised Statutes, for the taxable year in which the tax credit is properly claimed.

(b) The amount of the one-time tax credit shall be equal to $500; provided that no refund or payment on account of the tax credit allowed by this section shall be made for amounts less than $1.

(c) For the purposes of this Act, a "qualified taxpayer":

A qualified taxpayer may claim the tax credit after complying with these requirements.

(d) If the tax credit under this section exceeds the taxpayer's net income tax liability, 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 shall prepare such forms as may be necessary to claim a tax credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91 to effectuate the purposes of this section.

SECTION 2. This Act shall take effect upon its approval and apply to taxable years beginning after December 31, 2004.