Report Title:

Taxation; Income Tax Credit for Volunteer Services

Description:

Authorizes a tax credit for general volunteer services for a governmental entity or a nonprofit corporation or organization.

THE SENATE

S.B. NO.

2665

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to taxation.

 

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 part III to be appropriately designated and to read as follows:

"§235- Credit for general volunteer services performed for charitable nonprofit corporations or organizations. (a) Each resident individual 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 dependant by another for state or federal income tax purposes, may claim a credit against the tax otherwise due under this part in the amount of           dollars, provided that the resident performed general volunteer services for at least       hours in any taxable year for federal, state, or county agencies or charitable nonprofit corporations or organizations.

(b) Notwithstanding subsection (a), the credit shall not exceed the amount of tax owed by the resident for any taxable year; nor shall any credit be granted for volunteer services provided by a resident which are normally and customarily performed by a paid employee of the federal, state, or county agency or the charitable nonprofit corporation or organization for which the resident is providing services.

(c) The director shall provide by rule a method of documenting the actual performance by a resident of the hours of general volunteer service required to establish eligibility for the tax credit authorized in this section. The director shall also issue certificates of eligibility to nonprofit corporations or organizations which are organized for charitable purposes if the director is satisfied, upon application of the nonprofit corporation or organization, that the corporation or organization is regularly and effectively performing charitable works consistent with the purposes for which they were incorporated or organized. Only general volunteer services performed for a federal, state, or county agency or a certified nonprofit corporation or organization shall qualify for the credit."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval

and shall apply to taxable years beginning after December 31, 2004.

INTRODUCED BY:

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