HOUSE OF REPRESENTATIVES

H.B. NO.

2437

THIRTY-FIRST LEGISLATURE, 2022

H.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-     Health care provider tax credit.  (a)  There shall be allowed to each eligible health care provider subject to the tax imposed by this chapter, a health care provider 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 equal to $10,000.    (c)  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 necessary to effectuate the purposes of this section.

     (d)  The department of commerce and consumer affairs shall:

     (1)  Maintain records of the names, addresses, and license numbers of the eligible health care providers claiming the tax credit under this section; and

     (2)  Certify the license number and employment status of each eligible health care provider claiming the tax credit under this section.

Upon each determination, the department of commerce and consumer affairs shall issue a certificate to the eligible health care provider.  The taxpayer shall file the certificate with the taxpayer's tax return with the department.

     (e)  If in any taxable year the annual amount of certified credits for all taxpayers reaches $           in the aggregate, the department of commerce and consumer affairs shall immediately discontinue certifying credits and notify the department of taxation.  In no instance shall the department of commerce and consumer affairs certify a total amount of credits exceeding $           per taxable year.  To comply with this restriction, the department of commerce and consumer affairs shall certify or deny credits in the order submitted for certification.

     (f)  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 tax liability in subsequent years until exhausted.  All claims for the 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 credits may be claimed.  Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

     (g)  The credit allowed under this section shall be available for taxable years beginning after December 31, 2022, and shall not be available for taxable years beginning after December 31, 2025.

     (h)  For the purposes of this section:

     "Eligible health care provider" means a qualified nurse or qualified physician.

     "Qualified nurse" means an advanced practice registered nurse, registered nurse, or licensed practical nurse licensed pursuant to chapter 457 who is engaged in the active practice of nursing in the State.

     "Qualified physician" means a physician or osteopathic physician licensed pursuant to chapter 453 who is engaged in the active practice of medicine in the State."

     SECTION 2.  The Hawaii state center for nursing shall submit a report on the effect and impact of the tax credit on the State's health care provider workforce to the legislature no later than December 31, 2024.

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2060, and shall apply to taxable years beginning after December 31, 2022; provided that it shall be repealed on December 31, 2025.

 

 

 

Report Title:

Income Tax Credit; Health Care Provider Tax Credit; Physicians; Osteopathic Physicians; Nurses; Hawaii State Center for Nursing; Report; Sunset

 

Description:

Establishes a $10,000 income tax credit for physicians, osteopathic physicians, and nurses who are licensed and actively practicing in the State.  Requires the Hawaii state center for nursing to report to the legislature on impact and effect of the tax credit by December 31, 2024.  Sunsets December 31, 2025.  Effective 7/1/2060.  (HD1)

 

 

 

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