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THE SENATE |
S.B. NO. |
1152 |
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THIRTY-SECOND LEGISLATURE, 2023 |
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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:
"§235- Landlord
low-income tenant tax credit. (a)
There shall be allowed to each taxpayer subject to the tax imposed under
this chapter, a landlord low-income tenant 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)
In the case of a partnership, S corporation, estate, or trust, the tax
credit allowable is for qualified expenses incurred by the entity for the
taxable year. The expenses upon which
the tax credit is computed shall be determined at the entity level. Distribution and share of credit shall be
determined by rule.
(c)
The landlord low-income tenant tax credit shall be equal to fifty per
cent of the difference between the annual lease rent collected and the annual
appraised fair market rental value of the unit as determined by a licensed
appraiser; provided that the credit shall not be available to units with an
appraised property value exceeding $2,000,000.
(d)
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 under chapter 91 necessary to effectuate the purposes of this section.
(e)
If the tax credit claimed by the taxpayer under this section exceeds the
amount of the income tax payments due from the taxpayer, the excess of credit
over payments due shall be refunded to the taxpayer; provided that the tax
credit properly claimed by a taxpayer who has no income tax liability shall be
paid to the taxpayer; and provided further that no refunds or payments on
account of the tax credit allowed by this section shall be made for amounts
less than $1.
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 credit may
be claimed. Failure to comply with the
foregoing provision shall constitute a waiver of the right to claim the credit.
(f)
As used in this section:
"Eligible tenant" means a
family or an individual whose income does not exceed eighty per cent of the
area median income as determined by the United States Department of Housing and
Urban Development.
"Qualified unit" means a
housing unit that was not developed as, and is not considered to be, an
affordable housing unit.
"Qualifying taxpayer" means a landlord who leases a qualified unit for at least six months during the taxable year to eligible tenants."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2022.
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INTRODUCED BY: |
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