Report Title:

Tax Credit; Physicians

Description:

Provides a refundable physician's relocation tax credit equal to 50% of the physician's medical malpractice premium costs.

THE SENATE	S.B. NO.	2587
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO TAX CREDITS.

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-  Physician's relocation tax credit. (a)  There shall be allowed to each eligible individual or corporate taxpayer who is not claimed, or is not otherwise eligible to be claimed, as a dependent by another taxpayer for federal or state income tax purposes a physician's relocation tax credit that shall be deductible from the eligible taxpayer's net income tax liability imposed by this chapter for the taxable year in which the tax credit is properly claimed.

(b)  The amount of the tax credit shall be equal to fifty per cent of the cost of medical malpractice insurance premiums paid by the eligible taxpayer in the previous taxable year.

(c)  For the purposes of this section:

"Eligible taxpayer" means a physician licensed to practice medicine under chapter 453 or 460:

(1) Who either establishes a full-time practice on, or moves the physician's full-time practice from the mainland or Oahu to, a neighbor island and practices for one full taxable year; and

(2) Who is in compliance with all applicable federal, state, and county statutes, rules, and regulations.

"Neighbor island" means the island of Hawaii, Kauai, Lanai, Maui, Molokai, or Niihau.

(d)  If the tax credit under this section exceeds the taxpayer's net income tax liability, the amount of the excess tax credit shall be paid to the eligible taxpayer; provided that no refund or payment on account of the tax credit allowed by this section shall be made for amounts less than $1.

(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:

(1) Shall prepare 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 apply to taxable years beginning after December 31, 2007.

INTRODUCED BY:

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