HB1690.DOC

HOUSE OF REPRESENTATIVES	H.B. NO.	1690
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII

A BILL FOR AN ACT

relating to income 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- Income tax credit for portable generators. (a) As used in this section:

(1) "Adjusted gross income" has the same meaning as defined by section 235-1.

(2) "Qualified exemption" includes those exemptions permitted under this chapter; provided that a person for whom exemption is claimed has physically resided in the State for more than nine months during the taxable year; and provided that multiple exemption shall not be granted because of deficiencies in vision, hearing, or other disability.

(b) Each resident taxpayer who:

(1) Purchases a portable generator for use on real property within the State as the resident taxpayer's residence or the residence of the resident taxpayer's immediate family that is not partially or wholly exempted from real property tax;

(2) Is not eligible to be claimed as a dependent for federal or state income taxes by another; and

(3) Files an individual net income tax return for a taxable year,

may claim a tax credit under this section against the resident taxpayer's Hawaii state individual net income tax.

(c) Each taxpayer who has paid purchased a portable generator for use on real property as described under subsection (b) during the taxable year for which the credit is claimed may claim a tax credit of $300 multiplied by the number of qualified exemptions to which the taxpayer is entitled; provided that:

(1) The taxpayer, if filing individually, has an adjusted gross income of not more than $65,000; or

(2) The taxpayer, if filing jointly, has an adjusted gross income of not more than $130,000 and is the head of a household of not less than four members.

(d) The tax credits shall be deductible from the taxpayer's individual net income tax for the tax year in which the credits are properly claimed; provided that a husband and wife filing separate returns for a taxable year for which a joint return could have been made shall claim only the tax credits to which they would have been entitled had a joint return been filed. If the tax credit claimed under this section exceeds 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 any tax credits properly claimed under this section by an individual who has no income tax liability shall be refunded to the individual; and provided further that no refunds or payments on account of the tax credit allowed under this section shall be made for amounts less than $1.

(e) The director of taxation shall prepare and prescribe the appropriate form or forms to be used herein, may require proof of the claim for tax credits, 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 established in this section.

(g) Claims for a tax credit under this section, including any amended claims thereof, shall be filed on or before the end of the twelfth month following 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."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2015.

INTRODUCED BY:	_____________________________