HOUSE OF REPRESENTATIVES

 

AMENDMENT TO:

Senate Bill No. 1088, Senate Draft 2, House Draft 2

 

OFFERED BY:

Representative Colleen Meyer

 

DATE:

April 8th, 2003

SECTION 1. Senate Bill No. 1088, Senate Draft 2, House Draft 2, is amended by deleting Section 1 of the bill.

SECTION 2. Senate Bill No. 1088, Senate Draft 2, House Draft 2, is amended by amending Section 2 of the bill, and renumbering the section accordingly, to read as follows:

"SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235-   Long-term care tax credit. (a) Each resident individual taxpayer who files an individual income tax return for a taxable year, and who is not claimed or is not otherwise eligible to be claimed as a dependent by another taxpayer for Hawaii state individual income tax purposes, may claim a long-term care credit against the resident taxpayer's net individual

 

 

 

 

income tax liability for the taxable year for which the individual's income tax return is being filed; provided that a resident individual who has no income taxable under this chapter, and who is not claimed or is not otherwise eligible to be claimed as a dependent by a taxpayer for Hawaii state individual income tax purposes may claim this credit.

(b) The tax credit for a resident individual taxpayer, including a resident husband and wife filing a joint return, shall be an amount equal to the lesser of the following amounts:

(1) $2,500; or

(2) Fifty per cent of the cost of any long-term care insurance premium payments made by the resident individual taxpayer for the taxable year in which the payments were made;

provided that a resident husband and wife filing separate tax returns for a taxable year for which a joint return could have been filed by them shall claim only the tax credit to which they would have been entitled under this section had a joint return been filed.

For the purposes of this section, "long-term care insurance" shall have the same meaning as in section 431:10H-104.

(c) If a deduction is taken under this chapter pursuant to section 213 (with respect to medical, dental, etc., expenses) of the Internal Revenue Code of 1986, as amended, no tax credit shall be allowed for that portion of the cost of long-term care insurance for which the deduction was taken.

(d) The credit applies to premium payments for a long-term care insurance contract that covers:

(1) The taxpayer;

(2) The taxpayer's dependent as defined in section 152 of the Internal Revenue Code of 1986, as amended;

(3) The taxpayer's spouse;

(4) A son or daughter of the taxpayer;

(5) A stepson or stepdaughter of the taxpayer;

(6) The father or mother of the taxpayer; or

(7) A stepfather or stepmother of the taxpayer.

(e) If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted.

(f) All claims, including any amended claims, for tax credits under this section 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."

SECTION 3. Senate Bill No. 1088, Senate Draft 2, House Draft 2, is amended by deleting sections 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, and 13 of the bill.

SECTION 4. Senate Bill No. 1088, Senate Draft 2, House Draft 2, is amended by renumbering section 14 of the bill and amending the language to read as follows:

"SECTION 2. In codifying the new section added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new section in this Act."

SECTION 5. Senate Bill No. 1088, Senate Draft 2, House Draft 2, is amended by renumbering section 15 of the bill and amending the language to read as follows:

"SECTION 3. New statutory material is underscored."

SECTION 6. Senate Bill No. 1088, Senate Draft 2, House Draft 2, is amended by renumbering section 16 of the bill and amending the language to read as follows:

"SECTION 4. This Act shall take effect on July 1, 2003, and shall apply to taxable years beginning after December 31, 2003."