HOUSE OF REPRESENTATIVES

H.B. NO.

2576

TWENTY-SEVENTH LEGISLATURE, 2014

H.D. 1

STATE OF HAWAII

S.D. 1

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO EDUCATION.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


PART I

SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"235- Credit for charter school facility development. (a) There shall be allowed to each taxpayer who is subject to the tax imposed by this chapter, and does not owe the State delinquent taxes, penalties, or interest, a credit for contributions of money or in-kind goods and services for the development of charter school facilities. The 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 tax credit established under this section shall be equal to       per cent of the value of contributions of in-kind goods and services and contributions of money to the Hawaii charter school facility development special fund for that taxable year; provided that the aggregate value of the contributions of in-kind goods and services claimed by a taxpayer shall not exceed $           in a given taxable year.

(c) The tax credit allowed under this section shall be claimed against net income tax liability for the taxable year. 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) All claims for tax credits under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credits may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

(e) No taxpayer shall receive a credit under this section for the contribution of in-kind services if the taxpayer also claims a separate deduction for the payment of wages for those same services.

(f) The state public charter school commission shall maintain records of the names of taxpayers eligible for the credit and the total value of money and in-kind goods and services contributed for the development of charter school facilities for the taxable year. All contributions shall be verified by the state public charter school commission. The state public charter school commission shall total all contributions that it certifies. Upon each determination, the state public charter school commission shall issue a certificate to the taxpayer certifying:

(1) The amount of the contribution; and

(2) That the taxpayer has obtained a current and valid certificate signed by the director of taxation, showing that the taxpayer does not owe the State any delinquent taxes, penalties, or interest.

The taxpayer shall file the certificate from the state public charter school commission with the taxpayer's tax return with the department of taxation. When the total amount of certified contributions reaches $          , the state public charter school commission shall immediately discontinue certifying contributions and notify the department of taxation. In no instance shall the total amount of certified contributions exceed $           for each taxable year.

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

(h) For purposes of this section:

"Charter schools" has the same meaning as defined in section 302D-1.

"Net income tax liability" means income tax liability reduced by all other credits allowed under this chapter.

"Value of contributions of in-kind goods and services" means the fair market value of goods and uncompensated services or labor, as determined and certified by the department of accounting and general services."

SECTION 2. Chapter 302D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"302D- Hawaii charter school facility development special fund. (a) There is established within the department a special fund to be known as the Hawaii charter school facility development special fund, which shall be administered by the commission.

(b) Moneys in the Hawaii charter school facility development special fund may be:

(1) Expended by the commission for the acquisition, planning, design, improvement, construction, equipping, furnishing, administering, operating, and maintaining of charter school facilities and any other purpose deemed necessary by the commission for the purpose of developing charter school facilities; or

(2) Pledged by the commission to secure loans from private lending institutions for financially sound charter schools.

(c) The Hawaii charter school facility development special fund may receive contributions, grants, endowments, gifts in cash or otherwise, loans, and bond financing from all sources, including corporations or other businesses, foundations, government, individuals, and other interested parties. Any interest accrued on moneys in the fund shall become part of the fund. The legislature may appropriate moneys to the fund."

PART II

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2014-2015 to be deposited into the Hawaii charter school facility development special fund.

SECTION 4. There is appropriated out of the Hawaii charter school facility development special fund the sum of $           or so much thereof as may be necessary for fiscal year 2014-2015 to support the development of charter school facilities.

The sum appropriated shall be expended by the state public charter school commission for the purposes of this Act.

PART III

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2050, and shall apply to taxable years beginning after December 31, 2014; provided that part II of this Act shall take effect on July 1, 2014.


 


 

Report Title:

Hawaii Charter School Facility Development Special Fund; Tax Credit; Appropriation

 

Description:

Establishes a special fund for the development of charter school facilities. Establishes an income tax credit for taxpayers who make contributions to the development of charter school facilities. Appropriates funds for the Hawaii charter school facility development special fund. Effective July 1, 2050. (SD1)

 

 

 

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