Report Title:

Qualified Tax Credit

Description:

Generally, substitutes and adds the definition of "Qualified hotel facility" for the definition of "Qualified resort facility". Also adds a credit percentage of 10 percent for qualified improvement costs to a qualified hotel facility totalling $1,000,000 over a three year period.

HOUSE OF REPRESENTATIVES

H.B. NO.

224

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO QUALIFIED TAX CREDITS.

 

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

SECTION 1. Section 235D-1, Hawaii Revised Statutes, is amended to read as follows:

"[[]§235D-1[]] Definitions. Whenever used in this chapter, unless the context otherwise requires:

"Net income tax liability" means income tax liability reduced by all other allowed credits, as determined under chapter 235.

["Qualified general facility" means any building or improvement that is not a qualified resort facility.]

"Qualified hotel facility" means a hotel/hotel-condo as defined in section 486K-1 and includes a time share project.

"Qualified improvement costs" means any [capitalized costs for construction and equipment of a permanent nature related to a qualified resort facility or a qualified general facility, including infrastructure costs,] costs for plans, design, construction, equipment, alterations, modifications, and infrastructure for a qualified hotel facility, but shall not include the costs for which another tax credit was claimed for the taxable year.

["Qualified resort facility" means any building or improvement located or to be located:

(1) On property designated primarily for resort or hotel use by the applicable county zoning ordinances or general plan; or

(2) On property not so designated, but the primary purpose of which is for commercial or recreational use to support or service a hotel or resort use, such as a golf course, golf course clubhouse, or retail center.]"

SECTION 2. Section 235D-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The total amount of the qualified improvement tax credit shall be determined by applying the applicable credit percentage to the qualified improvement costs paid by the taxpayer in the taxable year. For qualified improvement costs to a qualified [resort] hotel facility totalling $1,000,000 or more over a three-year period, the applicable credit percentage shall be ten per cent. [For qualified improvement costs to a qualified general facility totalling $1,000,000 or more over a three-year period, the applicable credit percentage shall be           per cent.]"

SECTION 3. Section 235D-5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§235D-5[]] Limitation period. The tax credit allowed under this chapter shall be available for qualified improvement costs incurred during taxable years beginning after December 31, [1998,] 2002, and before January 1, [2006.] 2008."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2003 and shall apply to taxable years beginning after December 31, 2002.

INTRODUCED BY:

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