Report Title:

Tax; Educational Loans

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. (SD2)

 

HOUSE OF REPRESENTATIVES

H.B. NO.

1628

TWENTY-SECOND LEGISLATURE, 2003

H.D.1

STATE OF HAWAII

S.D.2


 

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 may be deducted from individual 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 after the effective date of this Act, as a health care provider as defined under section 323D-2, in an 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.

If a taxpayer claims a deduction under this section, the taxpayer shall not be allowed to claim a deduction for the same amounts under another provision of this chapter."

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 This Act shall take effect on July 1, 2053, and shall be repealed on January 1, 2008; provided that this Act shall apply to taxable years beginning after December 31, 2002, and ending before January 1, 2008.