HOUSE OF REPRESENTATIVES	H.B. NO.	962
TWENTY-SIXTH LEGISLATURE, 2011		H.D. 1
STATE OF HAWAII		PROPOSED

A BILL FOR AN ACT

RELATING TO TAXATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 235-2.4, Hawaii Revised Statutes, is amended by amending subsection (l) to read as follows:

     "(l)  Section 179 (with respect to the election to expense certain depreciable business assets) of the Internal Revenue Code shall be operative for purposes of this chapter[, except that provisions relating to:

(1) The increase of the maximum deduction to $100,000 for taxable years beginning after 2002 and before 2008, and the increase of the maximum deduction to $125,000 for taxable years beginning after 2006 and before 2011, in section 179(b)(1);

(2) The increase of the qualifying investment amount to $400,000 for taxable years beginning after 2002 and before 2008, and the increase of the qualifying investment amount to $500,000 for taxable years beginning after 2006 and before 2011, in section 179(b)(2);

(3) The increase of the maximum deduction to $250,000 and the increase of the qualifying investment amount to $800,000 for taxable years beginning in 2008 or 2009, in section 179(b)(7);

(4) Defining section 179 property to include computer software in section 179(d)(1);

(5) Inflation adjustments in section 179(b)(5);

(6) Irrevocable election in section 179(c)(2); and

(7) Special rules for qualified disaster assistance property in section 179(e),

shall not be operative for the purposes of this chapter]."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.

     SECTION 3.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2010.

Report Title:

Economic Development; Taxation; Expensing of Certain Depreciable Business Assets

Description:

Conforms state law to section 179 of the Internal Revenue Code, regarding the expensing of certain depreciable business assets.  (HD1)

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