THE SENATE	S.B. NO.	2696
TWENTY-NINTH LEGISLATURE, 2018
STATE OF HAWAII

A BILL FOR AN ACT

relating to taxation.

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 wages of former inmates hired by a technology business. (a) There shall be allowed to each taxpayer subject to the tax imposed by this chapter, a tax credit for certain wages paid to former inmates employed by a technology business owned by the taxpayer. The tax credit shall be deductible from the taxpayer's net income tax liability imposed by this chapter for the taxable year in which the credit is properly claimed.

(b) The amount of the credit shall be equal to        per cent of the qualified wages for the first six months after the former inmate is hired.

Tax credits that exceed the taxpayer's income tax liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted; provided that in no taxable year shall the total amount of tax credits claimed under this section exceed $          .

(c) For the purposes of this section:

"Former inmate" means a person formerly placed in the custody of the department of public safety.

"Qualified wages" means wages attributable to work rendered during the taxable year for the six-month period after a former inmate is hired.

"Technology business" shall have the same meaning as in section 480-4(d).

(d) The director of taxation:

(1) Shall prepare any forms necessary to claim a credit under this section;

(2) May require a taxpayer to furnish reasonable information in order to ascertain the validity of a claim for credit; and

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

(e) 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 is 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, 2017.

INTRODUCED BY:

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Report Title:

Income Tax Credit; Former Inmate Hires; Technology Businesses

Description:

Provides an income tax credit for wages paid by a technology business owner to employees who were formerly in the custody of the department of public safety.

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