Report Title:
Taxation
Description:
Creates a tax credit against general excise tax liability for the owners or operators of hotels or time-share facilities who create new jobs within the State during the taxable year. Creates a tax credit against general excise tax liability for the owners or operators of hotels or time-share facilities who train and/or retrain employees within the state during the taxable year.
HOUSE OF REPRESENTATIVES |
H.B. NO. |
833 |
TWENTY-SECOND LEGISLATURE, 2003 |
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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. Hawaii's tourism industry is a vital component to the State's economy. Sustaining this industry and providing stimulus for its growth are measures that the legislature must address in its continuing efforts to revitalize Hawaii's economy.
Although the tourism industry already provides for thousands of jobs within the State, there is room for the creation of new jobs and for the training of those entering or transitioning within the tourism industry workforce. This new job creation and job training will provide measurable benefits to the State; in return for these benefits, the legislature finds that the tourism industry should be afforded refundable tax credits against general excise tax liability as an incentive for the industry to continue its investment of resources into the State.
The purpose of this Act is to promote Hawaii's tourism industry by establishing a refundable tax credit for qualified job creation and qualified job training established by the tourism industry.
SECTION 2. Chapter 237, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:
"§237- Qualified job creation tax credit. (a) There shall be allowed to each taxpayer, subject to the taxes imposed by chapter 237, a qualified job creation tax credit that shall be deductible from the taxpayer's net general excise tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed. If the credit allowed under this section exceeds the taxpayer's tax liability for the tax in the taxable year, the excess of the credit over the liability shall be refunded to the taxpayer.
(b) The amount of the qualified job creation tax credit shall be $2,000 for each net new full-time employee job; provided:
(1) The job filled is for a position newly created in the State, and, for at least ninety days prior to being filled by the taxpayer, did not exist in the State as a job position of the taxpayer or of another related business entity; and
(2) The job position was filled during the tax year and continued to exist at the end of the tax year.
(c) All claims for the tax credit under this section shall be filed on or before June 30 following the close of the taxable year for which the tax credit is claimed. Failure to meet the filing requirements of this subsection shall constitute a waiver of the right to claim the tax credit.
(d) The director of taxation shall prepare any forms that may be necessary to claim the credit under this section. The director may also require the taxpayer to furnish information to ascertain the validity of the claim for credit under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91.
(e) As used in this section, the "taxpayer" shall mean the owner, operator or plan manager of a hotel or time share facility, as defined in section 237D-1.
§237- Qualified job training tax credit. (a) There shall be allowed to each taxpayer, subject to the taxes imposed by chapter 237, a qualified job training tax credit that shall be deductible from the taxpayer's net general excise tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed. If the credit allowed under this section exceeds the taxpayer's tax liability for the tax in the taxable year, the excess of the credit over the liability shall be refunded to the taxpayer.
(b) The job training tax credit shall be equal to fifty per cent of the qualifying expenses incurred in the taxable year to provide training, retraining, or both for a qualifying employee. The maximum amount of credit per employee shall not exceed $5,000 in any three-year period. The credit allowed pursuant to the provisions of this chapter that is attributable to the cost of providing training, retraining, or both to a qualifying employee shall be recaptured if the employee involuntarily other than as a result of death or disability no longer qualifies as a qualifying employee of the employer at any time during the ninety-day period following the employee's completion of the program.
(c) All claims for the tax credit under this section shall be filed on or before June 30 following the close of the taxable year for which the tax credit is claimed. Failure to meet the filing requirements of this subsection shall constitute a waiver of the right to claim the tax credit.
(d) To the extent the wages and other benefits paid or provided to a qualifying employee while that employee is enrolled in a program covered by this section, are attributable to the time the employee spent participating in the program, the qualifying expenses of the employer attributable to the employee shall include the portion (but not in excess of $1,000) of the wages and other benefits paid or provided to the employee that are directly attributable to the time spent by the employee participating in the program.
(e) The director of taxation shall prepare any forms that may be necessary to claim the credit under this section. The director may also require the taxpayer to furnish information to ascertain the validity of the claim for credit under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91.
(f) As used in this section:
"Qualifying employee" means an individual who is employed by the taxpayer.
"Qualifying expenses" means those reasonable expenses (less any federal, state, or local grants or other payments received by the employer to provide training or retraining) incurred by an employer to be covered by the provisions of this section, that are directly attributable to providing training, retraining, or both to qualifying employees that shall improve the skills required of those employees. These expenses shall include all reasonable amounts paid by the employer to public or private degree-granting educational institutions or directly to instructors to provide training, retraining, or both and any other reasonable direct cash expenses incurred by the employer to provide training, retraining, or both. The training or retraining, however, shall be provided solely at one or more locations within the State unless the employer shall establish that the training or retraining was not available at any location in this State or that it could be obtained at another location at a lower price.
"Taxpayer" means the owner, operator, or plan manager of a hotel or time share facility as defined in section 237D-1."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
INTRODUCED BY: |
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