Report Title:

Income Tax; Credit; Parent Friendly Policies

Description:

Provides income tax credits for businesses that implement workforce policies that are parent friendly.

HOUSE OF REPRESENTATIVES

H.B. NO.

1427

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO INCOME TAX.

 

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

SECTION 1. The legislature finds that parents need to have time off from work in order to become active in their children's lives. The legislature further finds that family oriented laws generally focus on the mother. However, fathers are also a necessary part of parenting.

The purpose of this Act is to provide an income tax credit for employers having a parent friendly workforce policy for mothers and fathers.

SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235- Tax credits to promote parent friendly policies. (a) There shall be allowed to each taxpayer subject to the tax imposed by this chapter a parent friendly workforce policy income tax credit which shall be deductible from the taxpayers' net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is claimed.

(b) The tax credit shall be $ to taxpayers employing fewer than fifty employees, or $ to taxpayers employing fifty or more employees, that implement a parent friendly policy. For purposes of this section, "parent friendly policy" means allowing employees who are parents reasonable paid time off from work to attend to personal matters involving the family including, but not limited to, attending parent-teacher conferences and other school or health-related meetings or activities that are important for the child's well-being; provided that the time off shall not be credited against vacation or sick leave benefits, if any.

(c) 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 that no refunds or payments on account of the tax credit allowed by this section shall be made for amounts less than $1.

(d) The director of taxation shall prepare such forms as may be necessary to claim a credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91.

(e) All of the provisions relating to assessments and refunds under this chapter and under section 231-23(c)(1) shall apply to the tax credit under this section.

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

SECTION 3. New statutory material is underscored.

SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2002.

INTRODUCED BY:

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