Report Title:

Teachers

 

Description:

Provides income tax credit for teachers.

 

HOUSE OF REPRESENTATIVES

H.B. NO.

473

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to REWARDS AND INCENTIVES for teachers.

 

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- Teacher income tax credit. (a) There shall be allowed an income tax credit against the net individual income tax for any teacher who has, as of the last day of the taxable year:

(1) Completed at least two but fewer than five years of service as a teacher, the tax credit shall be $200;

(2) Completed at least five but fewer than ten years of service as a teacher, the tax credit shall be $400;

(3) Completed at least ten but fewer than fifteen years as a teacher, the tax credit shall be $600; and

(4) Completed fifteen years or more of service as a teacher, the tax credit shall be $1,000.

(b) For the purposes of this section:

"Qualifying educational institution" means any public school as defined in section 302A-101 providing education for kindergarten to grade twelve, or any part thereof.

"Teacher" means a person who:

(1) Holds a license or credential issued by the Hawaii teacher standards board under chapter 302A or by the department of education under any predecessor statute; or

(2) Meets requirements equivalent to those required for a license or credential;

and whose primary responsibilities involve providing instructional services in a classroom at a qualifying educational institution.

(c) For the purposes of determining years of service performed as a teacher in a qualified educational institution in another state, the teacher shall qualify for each year the teacher in that state was:

(1) Licensed or credentialed by a public education agency; and

(2) Teaching in a qualifying educational institution.

(d) The tax credits shall be deductible from the taxpayer's individual net income tax for the tax year in which the credits are properly claimed. In the event the allowed tax credits exceed the amount of the income tax payments due from the taxpayer, the excess of credits over payments due shall be refunded to the taxpayer; provided that no refunds or payments on account of the tax credits allowed by this section shall be made for amounts fewer than $1.

(e) The director of taxation shall prepare and prescribe the appropriate form or forms to be filed to claim the credit, and may require proof of the claim for tax credits.

(f) Claims for tax credits under this section, including any amended claims thereof, shall be filed on or before the end of the twelfth month following the taxable year for which the credit may be claimed."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2000.

INTRODUCED BY:

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