SB148 CD1

THE SENATE	S.B. NO.	148
TWENTY-FOURTH LEGISLATURE, 2007		S.D. 2
STATE OF HAWAII		H.D. 1
		C.D. 1

A BILL FOR AN ACT

RELATING TO INCOME TAX CREDIT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that article VII, section 6, of the state constitution requires the legislature to provide a tax refund or tax credit when certain factors are met. The legislature finds that these factors have been met for the second year in a row and that the legislature is constitutionally required to provide a tax credit or tax refund to taxpayers.

The purpose of this Act is to provide for an income tax credit to satisfy constitutionally mandated requirements.

SECTION 2. There shall be allowed to each taxpayer who files a joint return a general income tax credit in accordance with the following table:

If the adjustable gross income is: The rebate shall be:

Under $5,000 $160

$5,000 and over but under $10,000 150

$10,000 and over but under $15,000 140

$15,000 and over but under $20,000 130

$20,000 and over but under $30,000 120

$30,000 and over but under $40,000 110

$40,000 and over but under $50,000 100

$50,000 and over but under $60,000 90

$60,000 and over 0.

SECTION 3. There shall be allowed to every head of a household and surviving spouse a general income tax credit in accordance with the following table:

If the adjustable gross income is: The rebate shall be:

Under $5,000 $140

$5,000 and over but under $10,000 130

$10,000 and over but under $15,000 120

$15,000 and over but under $20,000 110

$20,000 and over but under $30,000 100

$30,000 and over but under $40,000 90

$40,000 and over but under $50,000 80

$50,000 and over but under $60,000 70

$60,000 and over 0.

SECTION 4. There shall be allowed to every (1) unmarried individual (other than a surviving spouse, or the head of a household) and (2) married individual who does not make a single return jointly with the individual's spouse under section 235-93, Hawaii Revised Statutes, a general income tax credit in accordance with the following table:

If the adjustable gross income is: The rebate shall be:

Under $5,000 $65

$5,000 and over but under $10,000 55

$10,000 and over but under $15,000 45

$15,000 and over but under $20,000 35

$20,000 and over but under $30,000 25

$30,000 and over 0.

SECTION 5. For the purposes of sections 2, 3, and 4 of this Act, "adjustable gross income" means adjustable gross income as defined by the Internal Revenue Code.

SECTION 6. This Act shall take effect upon its approval and shall apply to the taxable year beginning after December 31, 2006.