Elder Care; Tax Credit
Provides income tax credit of $ , to taxpayers caring for an elderly relative certified by the DHS as requiring care in an intermediate care or skilled nursing facility if the elderly relative has received such care for at least 29 days. Requires DHS to provide certification.
HOUSE OF REPRESENTATIVES
TWENTY-SECOND LEGISLATURE, 2003
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO INCOME TAX CREDITS FOR ELDERLY AT-HOME CARE.
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- Elder at-home long-term care tax credit. (a) Each resident taxpayer, who files an individual income tax return for a taxable year, and 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, may claim a tax credit for the long-term care of elder relatives in the home against the taxpayer's individual income tax liability; 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; and provided that a resident individual who has no income or no income taxable under this chapter and who is not claimed or is not otherwise eligible to be claimed as a dependent by a taxpayer for federal or Hawaii state individual income tax purposes may also claim the tax credit provided in this section.
(b) Each individual taxpayer may claim a tax credit for the long-term care of an elder relative in the home as provided in this section in an amount equal to $ . In order for a taxpayer to claim a tax credit under this section, the elder relative shall:
(1) Be sixty-five years of age or older;
(2) Be totally disabled or chronically ill and otherwise would have to be cared for in a long-term care facility including intermediate care or skilled nursing facilities or nursing home;
(3) Be certified by the department of human services pursuant to section 346D- as requiring the level of care provided in a long-term intermediate care or skilled nursing facility or nursing home during the taxable year for which the credit is claimed; and
(4) Have been cared for and maintained in the taxpayer's residence for a period of not less than twenty-nine days.
(c) In order to claim a tax credit under this section, no taxpayer shall:
(1) Have placed the elderly relative for whom the tax credit is claimed in any for-profit adult day care center, long-term intermediate care or skilled nursing facility or nursing home for a period of more than twenty-nine days during the taxable year;
(2) Operate any type of nonprofit or for-profit care service for handicapped or elder individuals; or
(3) Claim a tax credit under section 235-55.6.
(d) As used in this section, "relative" means any person related to the taxpayer or the taxpayer's spouse as a grandparent, parent, child, aunt, uncle, sibling, or first cousin.
(e) The tax credit claimed by a resident taxpayer pursuant to this section shall be deductible from the resident taxpayer's individual income tax liability, if any, for the tax year in which the credit is properly claimed. If the tax credit claimed by a resident taxpayer exceeds the amount of income tax payment due from the resident taxpayer, the excess of credit over payments due shall be refunded to the resident taxpayer; provided that:
(1) A tax credit properly claimed by a resident individual who has no income tax liability shall be paid to the resident individual; and
(2) No refund or payment on account of the tax credit allowed by this section shall be made for amounts less than $1.
(f) All claims for a tax credit under this section, including any amended claims, shall be filed not later than 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 waiver of the right to claim the credit.
(g) The director of taxation shall prepare the appropriate forms to be used under this section, may require proof of the claim for tax credit, and may adopt appropriate rules under chapter 91."
SECTION 2. Chapter 346D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§346D- Long-term care; certification of appropriate level of care required for purposes of tax credit. Upon request by individuals claiming an elder at-home long-term care tax credit for providing long-term care at home for their elder relatives pursuant to section 235- , the department shall furnish certification stating the level of long-term care required for the elder in question."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2002.