Report Title:

Tax Credit; Conservation Land


Provides an unspecified percentage conservation land tax credit for land, not exceeding an unspecified value, donated to and accepted by the State that is situated in a conservation land use district or for a land owner who voluntarily reclassifies residentially zoned land to conservation and initiates the rezoning process. (HB2528 HD1)


H.B. NO.



H.D. 1






relating to conservation land.



SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"235- Conservation land tax credit. (a) There shall be allowed to each taxpayer who is not claimed or is not otherwise eligible to be claimed as a dependent by another taxpayer for federal or Hawaii state individual income tax purposes, a conservation land tax credit, which shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed; provided that a husband and wife filing separate returns for a taxable year for which a joint return could have been filed by them shall claim only the tax credit to which they would have been entitled had a joint return been filed.

(b) The tax credit shall apply to any taxpayer who is the owner of land that:

(1) Donates the land to the State that is classified as conservation, and is part of a conservation land use district, as that term is defined under section

205-2(e); provided that the board of land and natural resources accepts the donated land; or

(2) Voluntarily reclassifies residentially zoned land to conservation under section 205-2(e) and initiates the rezoning process.

The amount of the tax credit shall be     per cent of the appraised value of the land, which land shall not exceed $      in value.

(c) To qualify for the income tax credit, the taxpayer shall be in compliance with all applicable federal, state, and county statutes, rules, and regulations.

(d) If the tax credit under this section exceeds the taxpayer's net income tax liability under this chapter, any excess of the tax credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent taxable years until exhausted.

(e) The tax credit may be claimed only for taxable years that follow two successive fiscal years where the tax collections for each fiscal year exceed the previous fiscal year's tax collection by     per cent. The director of taxation shall notify the governor and the legislature of general fund tax collections at the close of every fiscal year.

(f) Every claim, including amended claims, for the 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 tax credit may be claimed. Failure to meet the filing requirements of this subsection shall constitute a waiver of the right to claim the tax credit.

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

(h) The department of taxation shall report to the legislature annually, no later than twenty days prior to the convening of every regular session, on the number of taxpayers claiming the tax credit and the total cost of the tax credit to the State during the past year."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2003.