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THE SENATE |
S.B. NO. |
2289 |
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THIRTIETH LEGISLATURE, 2020 |
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STATE OF HAWAII |
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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 part III to be appropriately designated and to read as follows:
"§235- Child care facility contribution tax credit. (a)
There shall be allowed to each taxpayer subject
to the taxes imposed by this chapter, an income tax credit 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 credit shall be fifty per cent of the amount of the monetary contribution
the taxpayer makes to a child care facility in the State.
(c) If
the tax credit claimed by the taxpayer exceeds the amount of income tax payment
due from the taxpayer, the excess of the credit over payments due shall be refunded
to the taxpayer; provided that a tax credit under this section properly claimed
by an individual who has no income tax liability shall be paid to the taxpayer;
and provided further that no refunds or payment on account of the tax credit allowed
by this section shall be made for amounts less than $1.
(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 foregoing
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) A taxpayer
shall not be eligible to claim a tax credit under this section if the taxpayer is
claiming a credit under section 235-55.6 in the same taxable year.
(g) 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.
(h) As
used in this section:
"Child care facility" means a licensed
child care facility as defined under section 346-151.
"Monetary contribution" means:
(1) Donating money for
the establishment or operation of a child care facility;
(2) Donating money to
establish a grant or loan program for a parent or parents in the State requiring
financial assistance for child care;
(3) Pooling moneys of
several businesses and donating the moneys for the establishment of a child care
facility in the State; or
(4) Donating money for
the training of child care providers in the State."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act, upon its approval, shall apply to
taxable years beginning after December 31, 2019.
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INTRODUCED BY: |
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Report Title:
Taxation; Refundable Tax Credit; Promotion of Child Care Facilities
Description:
Establishes a child care facility contribution refundable tax credit that is equal to 50% of the amount of the monetary contribution a taxpayer makes to a child care facility in the State. Prohibits a taxpayer from claiming both the child care contribution tax credit and the credit for employment-related expenses for household and dependent care services under section 235-55.6, HRS. Applies to taxable years beginning after December 31, 2019.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.