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HOUSE OF REPRESENTATIVES |
H.B. NO. |
577 |
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THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 2 |
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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- Public transportation subsidization tax credit. (a) There shall be allowed to each individual or corporate taxpayer who is not claimed, or is not otherwise eligible to be claimed, as a dependent by another taxpayer for federal or state income tax purposes, a public transportation subsidization tax credit that shall be deductible from the taxpayer's net income tax liability imposed by this chapter for the taxable year in which the tax credit is properly claimed.
(b) To qualify for the tax credit, the taxpayer shall be an employer having a place of business in any county in the State.
(c) The amount of the tax credit shall be equal to per cent of the amount spent by the taxpayer during the taxable year to purchase fares or passes for the employer's employees to use public transportation.
(d)
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;
provided that no credit carried forward under this subsection shall be used as
a credit for a taxable year beginning after December 31, 2030.
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 tax credit
may be claimed. Failure to meet the
filing requirements of this subsection 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 expenses used to claim a tax credit under this section for the taxable
year.
(f)
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.
(g) The tax credit authorized under this section shall not be available for taxable years beginning after December 31, 2029.
(h)
The director of taxation shall submit to the legislature reports
regarding the tax credit authorized under this section. Each report shall be submitted no later than twenty
days prior to the convening of the regular sessions of 2027, 2028, 2029, and
2030. Each report shall include, at
minimum:
(1) The
number and value of the credits granted under this section for the prior
calendar year; and
(2) The
total number and value of the credits granted under this section since its enactment.
(i)
For the purposes of this section, "public transportation"
means any mass transportation program that is:
(1) Open to the general public; and
(2) Operated or contracted by the State or a county."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect on July 1, 3000; provided that it shall apply to taxable years beginning after December 31, 2025.
Report Title:
Tax Credit; Businesses; Employees; Public Transportation; Legislature; Reports
Description:
Authorizes a tax credit for businesses that pay the public transportation costs of employees. Requires reports to the Legislature. Applies for taxable years beginning after 12/31/2025 but not beginning after 12/31/2029. Effective 7/1/3000. (HD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.