Report Title:
Language proficiency
Description:
Establishes a tax incentive for businesses to provide language training to workers with limited English proficiency.
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1702 |
TWENTY-SECOND LEGISLATURE, 2004 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that communication is a key to efficient business and upward mobility. One of the major problems for non-English speaking personnel in U.S. businesses is the fact that the language barrier represents a barrier to promotion. In the case of recently immigrated workers, these workers may not have the time or resources to devote to overcoming the language barrier outside of the workplace. The purpose of this Act is to provide an incentive to businesses to assist non-English speaking personnel to overcome a significant barrier to upward mobility.
SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235- Language proficiency; tax credit. (a) For taxable years beginning after December 31, 2004, there shall be allowed to each taxpayer subject to the taxes imposed by this chapter, an income tax credit, which shall be deductible from the eligible taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is property claimed.
(b) The amount of the credit shall be fifty per cent of the qualified costs incurred by the taxpayer or paid by the taxpayer for qualified language training expenses.
(c) The credit allowed under this section shall be claimed against the next income tax liability for the taxable year.
(d) If the credit under this section exceeds the eligible taxpayer's income tax liability, the excess of the credits over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted. Every claim, including amended claims, for a tax credit 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 wavier of the rights to claim the credit.
(e) The director of taxation shall prepare any forms that may be necessary to claim a credit under this section. The director may also require the taxpayer to furnish information to ascertain the validity of the claim for credit made under this section and may adopt rules necessary to effectuate the purpose of this section pursuant to chapter 91.
(f) As used in this section:
"Qualified language training expenses" means all of the following:
(1) Amounts paid or incurred by the taxpayer with respect to expenses incurred by or on behalf of an employee for qualified language training of that employee, including but not limited to, tuition, fees and similar payments, books and supplies;
(2) Expenses paid or incurred by the taxpayer for the wages of an employee for providing qualified language training to the taxpayer's employees, and expenses paid or incurred by the taxpayer for books and supplies used in connection with the provision of that training; or
(3) Expenses paid or incurred by the taxpayer for the wages of an employee receiving qualified language training, to the extent those wages are allocable to training time.
"Qualified language training" means training in English language and literacy to individuals with limited English proficiency or remedial training in English language and literacy."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2004.
INTRODUCED BY: |
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