HOUSE OF REPRESENTATIVES
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 235-55.6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Allowance of credit.
(1) In general. For each resident 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 dependent by another
taxpayer for federal or Hawaii state individual income tax purposes, who
maintains a household which includes as a member one or more qualifying
individuals (as defined in subsection (b)(1)), there shall be allowed as a
credit against the tax imposed by this chapter for the taxable year an amount
equal to the applicable percentage of the employment-related expenses (as
defined in subsection (b)(2)) paid by [
such] the individual
during the taxable year. If the tax credit claimed by a resident taxpayer
exceeds the amount of income tax payment due from the resident taxpayer, the
excess of the credit over payments due shall be refunded to the resident
taxpayer; provided that tax credit properly claimed by a resident individual
who has no income tax liability shall be paid to the resident individual; and
provided further that no refunds or payment on account of the tax credit
allowed by this section shall be made for amounts less than $1.
(2) Applicable percentage [
purposes of paragraph (1), the [ term "applicable percentage" means
twenty-five per cent reduced (but not below fifteen per cent) by one percentage
point of each $2,000 (or fraction thereof) by which the taxpayer's adjusted
gross income for the taxable year exceeds $22,000.] taxpayer's
applicable percentage shall be determined as follows:
Adjusted gross income Applicable percentage
Not over $25,000 25%
Over $25,000 but 24%
not over $30,000
Over $30,000 but 23%
not over $35,000
Over $35,000 but 22%
not over $40,000
Over $40,000 but 21%
not over $45,000
Over $45,000 but 20%
not over $50,000
Over $50,000 15%"
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2015.
Income Tax Credit; Expenses for Household and Dependent Care Services Necessary for Gainful Employment
Amends the income tax credit for expenses for household and dependent care services necessary for gainful employment by changing the manner for determining the taxpayer's applicable percentage of employment-related expenses that constitutes the tax credit. (HB1702 CD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.