SB3013

SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235- Wind resistive devices tax credit. (a) There shall be allowed to each taxpayer subject to the taxes imposed by this chapter, an income tax credit which shall be deductible from the taxpayer's net income tax liability imposed by this chapter for the taxable year in which the credit is properly claimed.

The amount of the credit shall be thirty-five per cent of the costs incurred during the taxable year for purchasing and installing wind resistive devices in a non-condominium residential dwelling owned by the taxpayer and located in the State.

The tax credit may be claimed only for wind resistive devices that are described by the director of taxation in the technical specifications issued by the director of taxation for the program. These technical specifications shall not be subject to chapter 91. The director of taxation may exclude from the tax credit, wind resistive devices that were installed due to a requirement of a building code.

(b) If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted. All claims, including amended claims, for a 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 credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

(c) The director may require the taxpayer to furnish information to ascertain the validity of the claim for credit made under this section.

(d) The director of taxation may require that applications from taxpayers to qualify wind resistive devices for the tax credit be first reviewed and approved by insurance commissioner; provided that in reviewing the application, the insurance commissioner shall be allowed to rely on a representation from an inspector or licensed contractor that the director of taxation's technical specifications have been met; provided further that the insurance commissioner shall not be required to conduct an on-site or physical inspection of the wind resistive devices as part of the review.

(e) As used in this section, "wind resistive devices" means devices that increase a building's or structure's resistance to damage from wind forces and shall include the following:

(1) Uplift restraint ties at roof ridges and roof framing members to wall or beam supports;

(2) Additional fastening of roof sheathing and roof decking for high wind uplift;

(3) Impact and pressure resistant exterior opening protective devices;

(4) Wall to foundation uplift restraint connections to strengthen wood foundation posts on footings; and

(5) A residential safe room.

The description, specifications, guidelines, and requirements for these wind resistive devices shall be further developed and determined by the director in the director's sole discretion. The director, in the director's sole discretion, may amend, narrow, or expand the definitions, description, specifications, and requirements of the wind resistive devices."

SECTION 2. Chapter 431, article 22, Hawaii Revised Statutes, is repealed.

SECTION 3. There is appropriated out of the loss mitigation grant fund the sum of $500,000, or so much thereof as may be necessary for fiscal year 2008-2009. The wind resistive devices tax credit will be available for taxable years beginning after December 31, 2008, and funding is needed to enable the loss mitigation grant program to continue until the tax credit becomes available.

The sum appropriated shall be expended by the department of commerce and consumer affairs for the purposes of this Act.

SECTION 4. Any moneys remaining in the loss mitigation grant fund after moneys are appropriated in accordance with section 3 of this Act shall be transferred to the hurricane reserve trust fund.

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2008; provided that section 1 shall apply to taxable years beginning after December 31, 2008; and provided further that section 2 shall take effect on December 31, 2008.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	3013
TWENTY-FOURTH LEGISLATURE, 2008
STATE OF HAWAII