HOUSE OF REPRESENTATIVES	H.B. NO.	652
THIRTIETH LEGISLATURE, 2019
STATE OF HAWAII

A BILL FOR AN ACT

relating to teachers.

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

SECTION 1. The legislature finds that in a survey of teachers conducted by the Hawaii state teachers association, forty-seven per cent of the respondents cited annual personal expenditures of $250 to $500 per year on classroom supplies, with some claiming expenditures of over $1,000.

The purpose of this Act is to establish a state income tax credit for expenses paid or incurred by school teachers, special education teachers, school librarians, and counselors for supplementary materials used in the classroom and for travel expenses incurred while accompanying students on educational trips.

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

"§235- Certain expenses; tax credit. (a) There shall be allowed to each qualifying taxpayer subject to the tax imposed by this chapter a tax credit for certain expenses that shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.

(b) The amount of the tax credit shall be equal to the amount expended for certain expenses in a taxable year; provided that the credit shall not exceed $500 per taxable year.

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

(d) All claims for a tax credit under this section, including amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the tax credit may be claimed. Failure to comply with the forgoing provision shall constitute a waiver of the right to claim the tax credit.

(e) No other tax credit or deduction shall be claimed under this chapter for the certain expenses used to claim a tax credit under this section for the taxable year.

(f) The director of taxation:

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

(2) May require the taxpayer to furnish reasonable information to ascertain the validity of the claim for the tax credit made under this section; and

(3) May adopt rules, pursuant to chapter 91, to effectuate this section.

(g) For the purposes of this section:

"Certain expenses" means expenses paid or incurred by a qualifying taxpayer in connection with:

(1) Books;

(2) Supplies, other than athletic supplies for courses of instruction in health or physical education;

(3) Computer equipment, including related software and services;

(4) Supplementary materials used in the classroom; and

(5) Travel expenses incurred by the qualifying taxpayer while the taxpayer is supervising, chaperoning, or providing educational guidance to students on an educational trip.

"Qualifying taxpayer" means a school teacher, special education teacher, school librarian, or counselor employed by the department of education, a charter school, or a private school in the State who instructs students in any grade from prekindergarten through twelfth grade."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2018.

INTRODUCED BY:

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Report Title:

Classroom Expenses; Travel Expenses

Description:

Establishes a state income tax credit for certain expenses paid or incurred by school teachers, special education teachers, school librarians, and counselors for supplementary materials used in the classroom, as well as expenses incurred while accompanying students on educational trips.

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