HB2125

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

"§235‑ Wind resistive devices tax credit. (a) There shall be allowed to each qualified taxpayer subject to the taxes imposed by this chapter, an income tax credit that shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the tax credit is properly claimed.

The amount of the credit shall be thirty-five per cent of the costs incurred during the taxable year for the purchase and installation of wind resistive devices in a noncommercial dwelling located in Hawaii that is owned by the taxpayer.

A tax credit may be claimed only for wind resistive devices that are prescribed and approved by the director of taxation. The director of taxation may also exclude from the tax credit, wind resistive devices that were installed due to a building code requirement.

(b) The credit allowed under this section shall be claimed against the net income tax liability for the taxable year.

(c) If the tax credit under this section exceeds the taxpayer's net income tax liability in a given taxable year, the excess of the credit over liability may be used as a credit against the taxpayer's net income tax liability in subsequent taxable years until exhausted. All claims for the tax credit under this section, including amended claims, 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 this subsection shall constitute a waiver of the right to claim the credit.

(d) The director of taxation shall prepare any forms that may be necessary to claim a tax credit under this section. The director may also require the taxpayer to furnish reasonable information to ascertain the validity of the claim for credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91.

(e) The tax credit allowed under this section shall be available for taxable years beginning after December 31, 2008.

(f) For the purposes of this section:

"Net income tax liability" means net income tax liability reduced by all other credits allowed under this chapter.

"Wind resistive devices" means devices and techniques that increase a building's or structure's resistance to damage from wind forces and shall include:

(1) Uplift restraint ties at roof ridges and roof framing members to wall or beam supports;

(2) Additional fastening of roof sheathing and roof decking for high wind uplift restraint;

(3) Impact and pressure resistant exterior opening protective devices;

(4) Wall to foundation uplift restraint connections strengthening for wood foundation posts on footings; and

(5) A residential safe room.

The description, specifications, guidelines, and requirements for these wind resistive devices shall be further developed and determined by the director of taxation in the director's sole discretion. The director, in the director's sole discretion, may amend, narrow, or expand the definitions, descriptions, specifications, and requirements of the wind resistive devices."

SECTION 2. Any unencumbered funds remaining in the loss mitigation grant fund established pursuant to section 431:22‑102, Hawaii Revised Statutes, shall lapse into the Hawaii hurricane relief fund established pursuant to section 431P-2, Hawaii Revised Statutes, in accordance with section 40-67, Hawaii Revised Statutes.

SECTION 3. To the extent requested by the department of taxation, all records, equipment, machines, files, books, papers, documents, and technical specifications relating to wind resistive devices pursuant to chapter 431:22, Hawaii Revised Statutes, in the care, custody, and control of the insurance commissioner shall be transferred to the department of taxation upon the effective date of this Act.

SECTION 4. If an office or position held by an officer or employee having tenure is abolished by this Act, the officer or employee shall not thereby be separated from public employment, but shall remain in the employment of the State with the same pay and classification and shall be transferred to some other office or position for which the officer or employee is eligible under the personnel laws of the State as determined by the head of the department or the governor.

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2008-2009 for the department of taxation to contract the services of a consulting structural engineer and to fund a public awareness program.

The sum appropriated shall be expended by the department of taxation for the purposes of this Act.

SECTION 6. Chapter 431, Article 22, Hawaii Revised Statutes, is repealed.

SECTION 7. New statutory material is underscored.

SECTION 8. This Act shall take effect on July 1, 2008; provided that section 1 shall apply to taxable years beginning after December 31, 2008, and sections 2, 3, 4, and 6 shall take effect on January 1, 2009.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2125
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII