Report Title:

Income Tax Credit for Creating High Paying Jobs

Description:

Provides an entrepreneur tax credit for taxpayers that create and maintain high paying jobs in Hawaii.

THE SENATE

S.B. NO.

836

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to ECONOMIC DEVELOPMENT.

 

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-    Entrepreneur tax credit. There shall be allowed to each taxpayer subject to the taxes imposed by this chapter, an entrepreneur tax credit that shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.

To qualify for the credit, the taxpayer shall:

(1) Have at least three full-time employees and hire an additional full-time employee during the taxable year prior to the taxable year in which the credit is claimed;

(2) Hire the additional full-time employee for a position that garners a wage of at least thirty per cent above the state average wage; and

(3) Continue to employ at least the number of full-time employees the taxpayer had upon hiring the additional full-time employee for twelve consecutive months or more.

(b) The amount of the credit shall be ten per cent of the taxpayer's net income tax liability after all other credits and deductions have been applied.

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

(d) Every claim, including amended claims, for a 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 credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

(e) The director of taxation shall prepare any forms that may be necessary to claim a credit under this section. The director may also require the taxpayer to furnish information to ascertain the validity of the claims for credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91.

(f) For purposes of this section,

"Full-time employee" shall have the same meaning as provided in section 209E-2."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2003; provided that section 1 of this Act shall apply to full-time employees hired after December 31, 2002.

INTRODUCED BY:

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