Report Title:

Taxes; Income Tax Credit; Safe Rooms

Description:

Provides tax credit to homeowners for construction of safe rooms.

HOUSE OF REPRESENTATIVES	H.B. NO.	294
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII

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 the construction of residential safe rooms would serve to mitigate the loss of life in a hurricane or tsunami.  Currently, the installation of wind resistive devices, including safe rooms, qualify for a grant under the loss mitigation grant program.  Safe rooms, though costly, provide additional safety.

     The purpose of this Act is provide an income tax credit for the construction of residential safe rooms.

     SECTION 2.  Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§235-   Tax credit for safe room installation. (a)  There shall be allowed to each 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, who files a net income tax return for a taxable year, a one-time nonrefundable safe room tax credit that shall be deductible from the taxpayer's net income tax liability imposed by this chapter.

(b)  The amount of the nonrefundable tax credit shall be equal to       per cent of the cost incurred by the taxpayer for the installation, including the costs of construction or renovation, of a residential safe room, as defined in section 431:22-101; provided that no refund or payment on account of the tax credit allowed by this section shall be made for amounts less than $1.

(c)  If the tax credit under this section exceeds the taxpayer's net income tax liability, any excess of the tax credit may be used as a credit against the taxpayer's income tax liability in subsequent taxable years until exhausted.

(d)  No taxpayer that claims the tax credit under this section shall claim any other credit for the same expenses or costs.

(e)  The director of taxation shall prepare any forms that 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."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval and shall apply to taxable years beginning after December 31, 2006.

INTRODUCED BY:

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