HOUSE OF REPRESENTATIVES

H.B. NO.

1298

TWENTY-SEVENTH LEGISLATURE, 2013

H.D. 1

STATE OF HAWAII

S.D. 2

 

 

 

 

 

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 be appropriately designated and to read as follows:

     "§235-    Income tax credit for hiring an individual with a disability.  (a)  There shall be allowed to each taxpayer subject to the tax imposed by this chapter, a credit for the hiring of every individual with a disability at a business owned by the taxpayer during the taxable year; provided that the tax credit shall not be allowed for the hiring of an individual who was previously employed by the taxpayer.  The tax credit 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.

     (b)  The amount of the credit shall be equal to fifty per cent of the qualified wages for the first six months after an individual with a disability is hired.  A tax credit 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; provided that in no taxable year shall the total amount of the tax credit claimed under this section exceed $          per individual hired.

     (c)  For the purposes of this section:

     "Individual with a disability" means an individual having a physical or intellectual impairment that substantially limits one or more major life activities, having a record of that impairment, or being regarded as having that impairment; provided that the disabling impairment is certified by a physician licensed under chapter 453.

     "Qualified wages" means wages attributable to work rendered by an individual with a disability for the six-month period after the individual is initially hired.

     (d)  The director of taxation:

     (1)  Shall prepare any forms necessary to claim a credit under this section;

     (2)  May require a taxpayer to furnish reasonable information in order to ascertain the validity of a claim for credit; and

     (3)  May adopt rules pursuant to chapter 91 to effectuate the purposes of this section.

     (e)  Claims for the tax credit under this section, including any amended claims, shall be filed on or before the end of the twelfth month following 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 tax credit."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2030, and shall apply to taxable years beginning after December 31, 2013.


 


 

Report Title:

Tax Credit; Individual with a Disability; Employment

 

Description:

Provides a taxpayer who hires an individual with a disability with a nonrefundable income tax credit at 50% of qualified wages for the 6-month period for which the individual is initially hired by the taxpayer.  Effective 07/01/2030.  (SD2)

 

 

 

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