Report Title:
Long-Term Care; Low-Income Refundable Caregiver Tax Credit
Description:
Provides a $1,000 refundable caregiver tax credit to taxpayer caregivers that care for qualified care recipients. (SD2)
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THE SENATE |
S.B. NO. |
3274 |
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TWENTY-THIRD LEGISLATURE, 2006 |
S.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to long-term care refundable caregiver tax credit.
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- Caregiver tax credit. (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, and who files an individual net income tax return for a taxable year, a $1,000 caregiver tax credit; provided that an eligible taxpayer who has no income or no income taxable under this chapter may claim the tax credit.
(b) As used in this section:
"Eligible taxpayer" means a caregiver who gives care to a qualified care recipient, with needs as specified in paragraph (3)(A) or (B) in the definition of qualified care recipient, and whose adjusted gross income is less than $50,000.
"Qualified care recipient" means an individual who is sixty years of age or older and a citizen or resident alien of the United States and an immediate relative or in-law of the eligible taxpayer who:
(1) Has lived in the eligible taxpayer's home for more than six months of the taxable year for which the credit is claimed;
(2) Has received more than fifty per cent of the qualified care recipient's financial support from the eligible taxpayer; and
(3) Is certified by a licensed physician or a registered nurse as requiring one or more of the following:
(A) Substantial supervision to protect the qualified care recipient from threat to health or safety due to cognitive impairment; or
(B) Substantial assistance to perform at least two of the following daily living activities:
(i) Bathing;
(ii) Eating;
(iii) Using the toilet;
(iv) Dressing; or
(v) Transferring, such as from bed to wheelchair.
(c) An eligible taxpayer may claim the tax credit for every taxable year that a qualified care recipient receives care. An eligible taxpayer may not claim multiple tax credits under this section in a taxable year, regardless of the number of qualified care recipients receiving care from the taxpayer.
(d) The eligible taxpayer shall certify to the department that the taxpayer is in compliance with all applicable federal, state, and county statutes, rules, and regulations.
(e) If the tax credit claimed by an eligible taxpayer exceeds the amount of income tax payment due from the taxpayer, the excess of the credit over the amount of tax due shall be refunded to the taxpayer; provided that tax credit amounts properly claimed by an eligible taxpayer who has no income tax liability shall be paid to the eligible taxpayer; and provided further that no refund or payment on account of the tax credit allowed by this section shall be made for amounts less than $1.
(f) 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.
(g) 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.
(h) 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."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2005.