Report Title:

Teachers; Professional Development; Tax Credit

Description:

Provides a tax credit to teachers for professional development and training expenses.

THE SENATE	S.B. NO.	2300
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII

A BILL FOR AN ACT

relating to taxation.

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-   Public school teacher income tax credit. (a)  For purposes of this section:

"Professional development and training expenses" means expenses for any course in any subject in which the eligible individual is certified to teach or becomes certified to teach within one year after completing the course.

"Qualifying educational institution" means any public school, as defined in section 302A-101, that provides education for students in grades kindergarten to twelve, or any part thereof.

"Teacher" means a taxpayer who:

(1) Holds a license or credential issued by the Hawaii teacher standards board under chapter 302A or by the department of education under any predecessor statute; or

(2) Meets requirements equivalent to those for a license or credential;

and whose responsibilities involve providing not less than seventy per cent of the teacher's formal employment time in the direct classroom instruction of students at a qualifying educational institution.

(b)  There shall be allowed to each teacher who teaches at a qualifying educational institution 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, a public school teacher income tax credit for professional development and training expenses incurred during the taxable year.  The tax credit shall be deductible from the taxpayer's net income tax liability imposed by this chapter for the taxable year in which the tax credit is properly claimed.

(c)  The tax credit shall only apply to a teacher who was employed at a qualifying educational institution for the entire school year in which the tax credit is claimed.  The amount of the tax credit shall be one hundred per cent of the professional development and training expenses incurred by a teacher employed at a qualifying educational institution during the taxable year; provided that this amount shall not exceed $          .

(d)  If the tax credit under this section exceeds the taxpayer's net income tax liability under this chapter, 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.

(e)  Every claim, including amended claims, for the tax credit under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the tax credit may be claimed.  Failure to meet the filing requirements of this subsection shall constitute a waiver of the right to claim the tax credit.

(f)  The director of taxation shall prepare such forms as 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.  The department of education shall certify to the department of taxation as to which teachers qualify for the tax credit allowed under this section.

(g)  The department of taxation shall report to the legislature annually, no later than twenty days prior to the convening of each regular session, on the number of taxpayers claiming the tax credit and the total cost of the tax credit to the State during the past year."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2007.

INTRODUCED BY:

_____________________________