HOUSE OF REPRESENTATIVES	H.B. NO.	2231
TWENTY-NINTH LEGISLATURE, 2018		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO INCOME TAX CREDIT.

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

SECTION 1. The legislature finds that when a taxpayer modifies a personal vehicle to allow a disabled person to enter, exit, or operate the vehicle, they have to pay the general excise tax for costs related to those modifications.

The legislature further finds that in order to encourage taxpayers to purchase or modify vehicles for use by persons with a disability, which provides them with an independent mode of travel, a tax credit to offset the cost of the purchase or modifications is necessary.

The purpose of this Act is to establish a nonrefundable income tax credit for the purchase or modification of a vehicle for use by a person with a disability.

SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235-   Nonrefundable income tax credit for the purchase or modification of vehicle for use by a person with a disability. (a) Each individual taxpayer, who files an individual income tax return for a taxable year, and who:

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

(2) Purchases or modifies a personal vehicle as described in subsection (b),

may claim a nonrefundable motor vehicle tax credit against the taxpayer’s individual income tax liability for the taxable year for which the income tax return is being filed.

(b) The nonrefundable motor vehicle tax credit may be claimed as follows:

(1)       per cent of the cost to purchase a vehicle with an accessibility lift or ramp or modify a vehicle to add an accessibility lift or ramp, up to a maximum of $800;

(2)       per cent of the cost to purchase a vehicle that is fully adaptable for use by a person with a disability or modify a vehicle to be fully adaptable for use by a person with a disability, up to a maximum of $5,000;

provided that taxpayers who are married filing separately shall only claim the tax credit they could have claimed if the taxpayers had filed jointly.

(c) If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of the credit over liability may be used as a credit against the taxpayer's income liability in subsequent years until exhausted.

(d) The director of taxation:

(1) Shall prepare such forms as may be necessary to claim a credit under this section;

(2) May require proof of the claim for the tax credit; and

(3) May adopt rules pursuant to chapter 91 necessary to effectuate the purposes of this section.

(e) 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.

(f) Claims for the tax credit 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."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 3000 and shall apply to taxable years beginning after December 31, 2018.

Report Title:

Disabled Persons Parking; Income Tax Credit

Description:

Provides a nonrefundable income tax credit to a taxpayer who purchases or modifies a personal vehicle for use by a person with a disability. Applies to taxable years beginning after December 31, 2018. (HB2231 HD1)

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