HOUSE OF REPRESENTATIVES	H.B. NO.	18
TWENTY-EIGHTH LEGISLATURE, 2015		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO LONG-TERM CARE.

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-   Long-term care tax credit. (a)  Each individual taxpayer who:

(1) Is subject to this chapter;

(2) Files an individual income tax return for a taxable year; and

(3) Is not claimed or is not otherwise eligible to be claimed as a dependent by another taxpayer for Hawaii state individual income tax purposes,

may claim a long-term care, nonrefundable tax credit against the taxpayer's net individual income tax liability for the taxable year for which the individual's income tax return is being filed; provided that an individual who has no income taxable under this chapter, and who is not claimed or is not otherwise eligible to be claimed as a dependent by a taxpayer for Hawaii state individual income tax purposes may claim this credit.

(b)  The tax credit shall apply to taxpayers with an adjusted gross income of:

(1) $         or less for a taxpayer filing a single return;

(2) $         or less for a married taxpayer filing separately;

(3) $         or less for a taxpayer filing as a head of household; or

(4) $         or less for a married taxpayer filing a joint return.

(c)  The tax credit for an individual taxpayer, including married taxpayers filing a joint return, shall be an amount equal to the lesser of the following amounts:

(1) $        ; or

(2)          per cent of the cost of any long-term care insurance premium payments made by the individual taxpayer for the taxable year in which the payments were made;

provided that married taxpayers filing separate tax returns for a taxable year for which a joint return could have been filed shall claim only the tax credit to which they would have been entitled under this section had a joint return been filed.

For the purposes of this section, "long-term care insurance" shall have the same meaning as defined in section 431:10H-104.

(d)  If a deduction is taken under this chapter pursuant to section 213 (with respect to medical, dental, etc., expenses) of the Internal Revenue Code of 1986, as amended, no tax credit shall be allowed for that portion of the cost of long-term care insurance for which the deduction was taken.

(e)  The tax credit applies to premium payments for a long-term care insurance contract that covers:

(1) The taxpayer;

(2) The taxpayer's dependent as defined in section 152 of the Internal Revenue Code of 1986, as amended;

(3) The taxpayer's spouse;

(4) A son or daughter of the taxpayer;

(5) A stepson or stepdaughter of the taxpayer;

(6) The father or mother of the taxpayer; or

(7) A stepfather or stepmother of the taxpayer.

(f)  No refunds or payment on account of the tax credit allowed by this section shall be made for amounts less than $1.

(g)  All claims, including any amended claims, for tax credits 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."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act, upon its approval, shall apply to taxable years beginning after July 1, 2050.

Report Title:

Long-term Care; Tax Credit

Description:

Provides tax credits to resident taxpayers for long-term care insurance premiums.  (HB18 HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.