Report Title:

Tax credits for air freight service to county with population of less than 100,000 residents.

Description:

Provides income tax credit for taxpayers to establish and provide direct air freight service to county with population of less than 100,000 residents; sunset tax credit after December 31, 2008.

THE SENATE

S.B. NO.

1562

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO TAX CREDITS FOR AIR FREIGHT SERVICE.

 

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- Tax credits for air freight service. (a) There shall be allowed to each taxpayer subject to the taxes imposed by this chapter an air freight service tax credit, which shall be deductible from the taxpayer's net income tax liability imposed by this chapter for the taxable year in which the credit is properly claimed.

(b) The amount of the credit shall be ten per cent of the taxpayer's operating costs to provide air freight service, including taxable amounts paid pursuant to chapter 239 and 243, in the taxable year beginning after December 31, 2003, and through the taxable year ending December 31, 2008.

(c) The director of taxation shall prepare such forms as may be necessary to claim a 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 purpose of this section.

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

(e) The tax credit allowed under this section shall be available for taxable years beginning after December 31, 2003, through taxable years ending December 31, 2008.

(f) As used in this section:

"Air freight service" means air transportation solely of property by a contract carrier, as defined in section 239-2, operating from any of the forty-nine continental states in the United States and providing direct service at least once a week to a county in Hawaii with a population of less than 100,000 residents.

"Operating costs" means initial capital improvement and related start-up expenditures and operating expenses incurred after December 31, 2003, and through December 31, 2008, to establish and to provide air freight service as defined in this section."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2003, through taxable years ending December 31, 2008, and shall be repealed on January 1, 2010.

INTRODUCED BY:

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