HB1601

SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235- Food tax credit. (a) Each resident individual taxpayer, who files an individual income tax return for a taxable year, and 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, may claim a food tax credit of $45 against the resident taxpayer's individual income tax liability for the taxable year for which the individual income tax return is being filed; provided that a resident individual who has no income or no income taxable under this chapter and who is not claimed or is not otherwise eligible to be claimed as a dependent by a taxpayer for federal or Hawaii state individual income tax purposes may claim this credit. The food tax credit of $45 shall be multiplied by the number of qualified exemptions to which the taxpayer is entitled.

(b) For the purposes of this section, a "qualified exemption" includes those exemptions permitted under this chapter; provided that:

(1) A person for whom an exemption is claimed has physically resided in the state for more than nine months during the taxable year; and

(2) Multiple exemptions shall not be granted because of age, deficiencies in vision or hearing, or other disability.

For purposes of claiming the credit only, a minor child receiving support from the department of human services of the State, social security survivor's benefits, and the like, may be considered a dependent and a qualified exemption of the parent or guardian.

(1) Any person who has been convicted of a felony and who has been committed to prison and has been physically confined for the full taxable year; or

(2) Any person who would otherwise be eligible to be claimed as a dependent but who has been committed to a youth correctional facility and has resided at the facility for the full taxable year.

(d) The tax credit claimed by a resident taxpayer pursuant to this section shall be deductible from the resident taxpayer's individual income tax liability, if any, for the tax year in which it is properly claimed. If the tax credit claimed by a resident taxpayer exceeds the amount of income tax payment due from the resident taxpayer, the excess of the tax credit amount over the payment amount due shall be refunded to the resident taxpayer; provided that:

(1) A tax credit properly claimed by a resident individual who has no income tax liability shall be paid to the resident individual; and

(2) No refunds or payment on account of the tax credits allowed by this section shall be made for less than $1.

(e) All claims for tax credits under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the tax credits may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2006.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1601
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII