HB707 HD1

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 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 against the taxpayer's individual income tax liability for the taxable year for which the individual income tax return is being filed; provided that a taxpayer 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.

(b) Each individual taxpayer may claim tax credits in the following amounts:

TAX CREDIT SCHEDULE

Taxpayer adjusted gross income Tax credit

$17,500 and less than $0

$17,501 to $35,000 $

$35,001 to $50,000 $

$50,001 to $70,000 $

Over $70,000 $ ;

provided that a husband and wife filing separate tax returns for a taxable year for which a joint return could have been filed by them shall claim only the tax credit to which they would have been entitled.

(1) Any person who has not resided in the state for the entire year for which the food tax credit is claimed;

(2) 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;

(3) 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; or

(4) Any misdemeanant who has been committed to jail and has been physically confined for the full taxable year.

(d) If the tax credits claimed by a taxpayer exceed the amount of income tax payment due, the excess of credits over payments due shall be refunded to the taxpayer; provided that no refunds or payment on account of the tax credits allowed by this section shall be made for amounts 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 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:

(1) Shall prepare the forms as may be necessary to claim a tax credit under this section;

(2) May require proof of the claim for the tax credit; and

(3) May adopt rules pursuant to chapter 91 to effectuate the purposes of this section."

SECTION 2. New statutory material is underscored.

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

HOUSE OF REPRESENTATIVES	H.B. NO.	707
TWENTY-FOURTH LEGISLATURE, 2007		H.D. 1
STATE OF HAWAII