Report Title:
Tax credits; private employers of reservists and National Guard members called to active duty
Description:
Provides tax credits to private employers of reservists and National Guard members who are called to active duty.
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THE SENATE |
S.B. NO. |
1602 |
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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- Tax credit; employers of reservists and National Guardsmen. (a) There shall be allowed to each qualified taxpayer subject to the taxes imposed by this chapter, a tax credit that may be claimed for taxable years beginning after December 31, 2005, for the wage or salary differential between the compensation paid by a private employer to an employee who is a reservist or National Guardsman and the compensation paid to said employee as a reservist or National Guardsman called to active duty.
(b) The tax credit earned by a private employer shall be limited to an amount no greater than $25,000 and shall be available for no more than two years.
(c) To qualify for the tax credit, a taxpayer shall:
(1) Be a private employer that employs a reservist or National Guardsman; and
(2) Continues to pay the employee while the employee is on active duty.
(d) The credit shall be available for each employee called to active duty.
(e) Every claim, including amended claims, for a 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 credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.
(f) The director of taxation shall prepare any forms that may be necessary to claim a credit under this section. The director may also require the taxpayer to furnish information to ascertain the validity of the claims for credits made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91.
(g) As used in this section:
"National guardsman" means a member of the organized militia reserved to the states by the Constitution of the United States under Article I, section 8.
"Private employer" means every person having control or custody of any employment, or of any employee, but shall not include the United States or the State or any political subdivision thereof.
"Reservist" means members of a military service of the United States who are not in active service but who are subject to call to active duty."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect on July 1, 2005.
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INTRODUCED BY: |
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