Report Title:

Tax credit; international learning missions

Description:

Provides a tax credit for sponsorship of children that undertake international learning missions.

HOUSE OF REPRESENTATIVES	H.B. NO.	2624
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII

A BILL FOR AN ACT

relating to international learning missions.

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-A Credit for sponsorship of children to participate in international learning missions. (a) There shall be allowed to each corporation, including a corporation carrying on business in partnership, subject to the tax imposed by part IV of this chapter, a credit for sponsoring children to participate in international learning missions which shall be deductible from the corporation's net tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.

(b) The amount of the credit determined under this section for the taxable year shall be equal to one hundred per cent of the qualified costs of sponsoring a child to participate in an international learning mission, provided that sponsorship of more than one child shall be allowed, however, the credit allowed for sponsorship of each subsequent child shall be reduced by an additional twenty per cent, with no credit being allowed for sponsorship of a sixth child.

(c) For purposes of this section:

"International learning mission" means an educational program through an accredited educational institution that requires living, traveling, and studying abroad for academic credit at the accredited educational institution.

"Qualified costs" means any costs required for a child to participate in an international learning mission, including, travel, boarding, food, registration or other associated fees, and educational supplies.

(d) The credit allowed under this section shall be claimed against net corporation income tax liability for the taxable year.  A tax credit under this section which exceeds the corporation's income tax liability may be used as a credit against the corporation's income tax liability in subsequent years until exhausted.

(e) All claims for 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 credits 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 may adopt any rules under chapter 91 and forms necessary to carry out this section."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2008.

INTRODUCED BY:

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