HB2857.DOC

SECTION 1. The State finds that according to the

Alzheimer's Association's 2011 Alzheimer's Disease Facts and Figures report, eighty per cent of the caregivers of Alzheimer's patients are family members.

Approximately twenty-seven thousand of Hawaii's residents suffer from Alzheimer's Disease. That disease is the most prevalent type of dementia, and accounts for approximately seventy per cent of all dementia patients. This means that thousands of additional Hawaii residents suffer from other forms of dementia.

The State further finds that, according to the Hawaii Council on Developmental Disabilities, more than twenty-three thousand people in Hawaii suffer from some type of developmental disability.

The State further finds that those who suffer from Alzheimer's Disease, dementia, and developmental disabilities have an unfortunate, common bond. Such individuals, due to their respective conditions, may, without warning, wander from their homes. Some of those individuals become frightened or disoriented. In some cases, they are lost and never seen again.

Given the effects of Alzheimer's Disease, dementia, and developmental disabilities on those diagnosed with such conditions, it is often helpful and necessary for their families to engage in remote monitoring through modern technology. The costs of such devices, however, may be prohibitive.

The purpose of this Act is to provide tracking technology-based tax credits to those individuals who provide uncompensated care to family members who have Alzheimer's Disease, dementia, or developmental disabilities.

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 credits for technology to remotely monitor family members with Alzheimer's disease, dementia, or developmental disabilities. (a) Any individual taxpayer who files an income tax return for a taxable year may claim the income tax credits under this section against the Hawaii state individual net income tax, provided that:

(1) The taxpayer serves, without remuneration, as the primary caregiver of a covered family member who lives in the taxpayer's home; and

(2) The taxpayer, in order to remotely monitor that covered family member as part of the necessary and proper care of that family member, purchases a qualifying device, pays for the service that is essential for the operation of a qualifying device, or both.

(b) The monitoring device purchase tax credit shall be equal to the lesser of $100 or the amount that the taxpayer pays to purchase a qualifying device; provided that this credit is only available in the taxable year in which the taxpayer initially purchases that device.

(c) The monitoring service tax credit shall be equal to the lesser of $50 or the amount that the taxpayer pays within a taxable year for the service that is essential for the operation of a qualifying device; provided that this credit does not apply to electricity and battery costs.

(d) If the tax credits claimed by the taxpayer under this section exceed the amount of the income tax payments due from the taxpayer, the excess of credit over payments due shall be refunded to the taxpayer; provided that the tax credit properly claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer; and provided that no refunds or payments on account of the tax credit allowed by this section shall be made for amounts less than $1.

(e) The director of taxation shall prepare such forms as may be necessary to claim a credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91.

(f) All of the provisions relating to assessments and refunds under this chapter and under section 231-23(c)(1) shall apply to the tax credit under this section.

(g) Claims for the tax credits available under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the taxable year for which the credit may be claimed.

(h) As used in this section:

"Covered family member" means a family member with Alzheimer's disease, dementia, or a developmental disability.

"Qualifying device" means any bracelet, watch, or other device that is lockable on the person of a covered family member and that is equipped with global positioning technology that allows the taxpayer to remotely and instantly know, to a degree of reasonable certainty, the exact location of the covered family member.

SECTION 3. New statutory material is underscored.

SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2011.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2857
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII