HOUSE OF REPRESENTATIVES

H.B. NO.

2242

THIRTIETH LEGISLATURE, 2020

 

STATE OF HAWAII

 

 

 

 

 

 

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 part III to be appropriately designated and to read as follows:

"235- Child tax credit. (a) Any taxpayer who files an individual income tax return for a taxable year may claim an income tax credit under this section against the Hawaii state individual net income tax.

(b) Each individual taxpayer may claim a tax credit for each qualifying child of the taxpayer in accordance with the table below; provided that a husband and wife filing separate tax returns for a taxable year for which a joint return could have been filed by them shall claim only the tax credit to which they would have been entitled had a joint return been filed.

Adjusted gross income Credit per qualifying child

for taxpayers filing

a single return and

married individuals filing

separate returns

Not over $35,000 $500

Over $35,000 but not over $75,000 $250

Over $75,000 $ 0.

Adjusted gross income Credit per qualifying child

for heads of household

Not over $55,000 $500

Over $55,000 but not over $107,500 $250

Over $107,500 $ 0.

Adjusted gross income Credit per qualifying child

for married couples

filing joint returns

and surviving spouses

Not over $75,000 $500

Over $75,000 but not over $140,000 $250

Over $140,000 $ 0.

This credit is available only to Hawaii residents. Any part-year resident entitled to a credit under this section shall receive a proportional credit reflecting the part of the year in which the part-year resident was domiciled in Hawaii.

(c) In the case of divorced parents or parents who do not live together, if the qualifying child is in the custody of one or both of the child's parents for more than one-half of a calendar year, the child is the qualifying child of the custodial parent for the taxable year beginning during the calendar year. However, the child may be the qualifying child of the noncustodial parent if either of the following requirements are met:

(1) A court of competent jurisdiction has unconditionally awarded, in writing, the noncustodial parent the tax credit authorized under this section and the noncustodial parent attaches a copy of the court order to the noncustodial parent's income tax return for the taxable year; or

(2) The custodial parent signs a written declaration that the custodial parent shall not claim the credit of this section with respect to the child for any taxable year beginning in the calendar year and the noncustodial parent attaches the written declaration to the noncustodial parent's income tax return for the taxable year beginning during the calendar year.

(d) The credit allowed under this section shall be claimed against the net income tax liability for the taxable year. If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of the tax credit over liability may be used as a credit against the taxpayer's net income tax liability in subsequent years until exhausted. All claims, 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:

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

(2) May require the taxpayer to furnish reasonable information to ascertain the validity of the claim for the tax credit made under this section; and

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

(f) As used in this section, "qualifying child" has the meaning as defined in section 24(c) of the Internal Revenue Code."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2019.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Income Tax; Child Tax Credit

 

Description:

Establishes a nonrefundable state child tax credit.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.