Report Title:

Tax Deduction; Educational Loans; Primary Health Care Providers

Description:

Provides a tax deduction for interest on educational loans paid by primary health care providers with gross income under $80,000 that start a new practice in state enterprise zones located in certain areas of the State. (SD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

1628

TWENTY-SECOND LEGISLATURE, 2003

H.D. 1

STATE OF HAWAII

S.D. 1


 

A BILL FOR AN ACT

 

RELATING TO EDUCATIONAL LOANS.

 

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- Educational loan tax deduction. There shall be excluded from individual or corporate gross income, adjusted gross income, and taxable income, all amounts paid as interest on educational loans by single taxpayers with a gross income of less than $80,000, or $100,000 for taxpayers who file jointly; provided that the deduction shall apply only to a taxpayer who:

(1) Is a primary health care provider;

(2) Is not a qualified business under chapter 209E; and

(3) Has established a new practice as a health care provider as defined under section 323D-2, in a state enterprise zone under chapter 209E, on:

(A) Hawaii, Kauai, or Maui counties;

(B) The north shore of Oahu, Koolauloa; or

(C) The leeward coast of Oahu in Makaha, Waianae, Maili, or Nanakuli."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2053, and shall be repealed on January 1, 2008; provided that this Act shall apply to taxable years beginning after December 31, 2002, and ending before January 1, 2008.