Report Title:

Tax Credit; Teachers

Description:

Provides a tax credit to public school teachers of $500 for teachers with less than five years of experience in the DOE and $250 for teachers with five or more years of experience in the DOE. (SD1)

THE SENATE

S.B. NO.

2112

TWENTY-SECOND LEGISLATURE, 2004

S.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO PUBLIC SCHOOL TEACHER TAX CREDIT.

 

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-   Public school teacher tax credit. (a) There shall be allowed to each individual taxpayer who is a public school teacher 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, a public school teacher tax credit. The tax credit shall be deductible from the taxpayer's net income tax liability imposed by this chapter for the taxable year in which the tax credit is properly claimed.

(b) The tax credit shall only apply to public school teachers who were employed for the entire school year in which the tax credit is claimed. The amount of the tax credit shall be $500 for teachers with less than five years of experience in the department of education and $250 for teachers with five or more years of experience in the department of education, provided that teacher shall mean those employees who spend not less than seventy per cent of their formal employment time in the direct classroom instruction of students.

(c) To qualify for the income tax credit, the taxpayer shall be in compliance with all applicable federal, state, and county laws, as well as department of education rules and internal 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 may be used as a credit against the taxpayer's income tax liability in subsequent taxable years until exhausted.

(e) 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.

(f) 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.

(g) 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.