REPORT TITLE:



DESCRIPTION:


 
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                                                        1209
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO PREPAID HEALTH CARE INCOME TAX DEDUCTION.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 235, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "235-    Prepaid health care expenses.  (a)  There shall be
 
 5 allowed as a deduction from gross income the premium paid or
 
 6 incurred during the taxable year by an employer toward a prepaid
 
 7 health care plan under chapter 393.
 
 8      (b)  The amount of the deduction shall be the actual cost of
 
 9 the premium paid or incurred by an employer to a prepaid health
 
10 care plan contractor under chapter 393 multiplied by two.
 
11      (c)  The amount allowed as a deduction shall be in lieu of
 
12 the prepaid health care plan premium expense deduction allowed
 
13 under section 162 of the Internal Revenue Code of 1954, as
 
14 amended.
 
15      (d)  The director of taxation may prepare such forms as may
 
16 be necessary to claim a deduction under this section. The
 
17 director may also require the taxpayer to furnish reasonable
 
18 information to ascertain the validity of the claim for deduction
 
19 made under this section and may adopt rules necessary to
 

 
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 1 effectuate the purposes of this section pursuant to chapter 91." 
 
 2      SECTION 2.  New statutory material is underscored.
 
 3      SECTION 3.  This Act, upon its approval, shall apply to
 
 4 taxable years beginning after December 31, 1999. 
 
 5 
 
 6                           INTRODUCED BY:  _______________________
 

 
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