Report Title:

Employee Increase Tax Credit

 

Description:

Provides maximum tax credit of $ for an employer that increases employee count over the prior taxable year. (HB1309 HD1)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1309

TWENTY-FIFTH LEGISLATURE, 2009

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO EMPLOYEE INCREASE 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-   Employee increase tax credit. (a) There shall be allowed to each taxpayer subject to the tax imposed by this chapter, an employee increase tax credit for any taxpayer who is an employer in the state who demonstrates to the department an increase in the number of the employer's employees over the prior taxable year. The credit shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year for which the credit is properly claimed.

(b) The amount of the credit determined under this section for the taxable year shall be forty per cent of the employee's wages paid, up to $ , for each employee who is employed in excess of the total number of the taxpayer's employees during the prior taxable year, and who is retained for at least eighteen hundred hours by the employer in the taxable year for which the credit is claimed.

(c) The credit allowed under this section shall be claimed against net income tax liability for the taxable year in which the increase in employees that is the basis of the credit occurs. A tax credit under this section that exceeds the taxpayer's income tax liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted.

(d) Every claim for tax credit under this section, including an amended claim, 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 may adopt any rules under chapter 91 and prescribe any forms necessary to carry out this section."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2112, and shall apply to taxable years beginning after December 31, 2009.