THE SENATE

S.B. NO.

438

THIRTIETH LEGISLATURE, 2019

S.D. 1

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-    Electric vehicle charging system tax credit.  (a)  Each year during the credit period, there shall be allowed to each taxpayer subject to the taxes imposed by this chapter, an electric vehicle charging system tax credit that shall be applied to 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 for:

     (1)  The installation of a new electric vehicle charging system shall be equal to:

          (A)  Thirty per cent of the qualified costs incurred by the taxpayer for a level two charging system with a single port; provided that the tax credit for installing a level two charging system with a single port shall not exceed $2,000 per taxable year;

          (B)  Fifty per cent of the qualified costs incurred by the taxpayer for a level two system with two or more ports; provided that the tax credit for installing a level two system with two or more ports shall not exceed $6,000 per taxable year; and

          (C)  Seventy per cent of the qualified costs incurred by the taxpayer for a level three charging system; provided that the tax credit for installing a level three charging system shall not exceed $35,000 per taxable year; and

     (2)  The upgrade of an electric vehicle charging system shall be equal to:

          (A)  Fifty per cent of the qualified costs incurred by the taxpayer for a level two charging system with two or more ports; provided that the tax credit for upgrading a level two charging system with two or more ports shall not exceed $3,000 per taxable year; and

          (B)  Seventy per cent of the qualified costs incurred by the taxpayer for a level three charging system; provided that the tax credit for upgrading a level three charging system shall not exceed $28,000 per taxable year;

provided that unless otherwise provided by law, use of the electric vehicle charging system shall be provided to the public; provided further that the total amount of tax credit allowed pursuant to this section shall not exceed $3,000,000 in qualified costs in any 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.  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.

     (d)  No other tax credit may be claimed under this chapter for the qualified costs used to properly claim a tax credit under this section for the taxable year.

     (e)  The director of taxation:

     (1)  Shall prepare any forms that may be 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 implement the purposes of this section.

     (f)  The tax credit allowable in this section shall be available for taxable years beginning after December 31, 2018.

     (g)  For purposes of this section:

     "Electric vehicle charging system" shall have the same meaning as in section 291-71.

     "Qualified costs" means all costs and expenses directly resulting from the installation and operation of an electric vehicle charging system that is made available for public use."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2018.

 

 

 

Report Title:

Electric Vehicle Charging System; Installation; Upgrade; Tax Credit

 

Description:

Provides a tiered income tax credit to taxpayers who install or upgrade an electric vehicle charging system that is available for use by the public, unless otherwise required by law.  (SD1)

 

 

 

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