H.B. NO.














relating to child safety.





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

"235- Car seat program; income tax credit. (a) There shall be allowed to each qualified taxpayer subject to the tax imposed under this chapter, a car seat program income tax credit that 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) In the case of a partnership, S corporation, estate, or trust, the tax credit allowable is for qualified expenses incurred by the entity for the taxable year. The expenses upon which the tax credit is computed shall be determined at the entity level. Distribution and share of credit shall be determined by rule.

(c) The car seat program income tax credit shall be equal to the qualified expenses of the qualified taxpayer, up to a maximum of $        .

(d) 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.

(e) If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of the credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted. All claims for the tax credit under this section, including amended claims, 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.

(f) As used in this section:

"Qualified expenses" means expenses directly incurred by a qualified taxpayer to establish and operate a program that allows a passenger to request a vehicle equipped with a child passenger restraint system that meets federal motor vehicle safety standards at the time of its manufacture.

"Qualified taxpayer" means:

(1) A transportation network company; or

(2) The owner or operator of a taxicab.

"Taxicab" has the same meaning as in section 269-1.

"Transportation network company" has the same meaning as in section 431:10C-701."

SECTION 2. Section 235-15, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The tax credit shall be [$25; provided that the taxpayer purchases one or more] $ for each new child passenger restraint [systems] system purchased by the taxpayer in the tax year for which the credit is properly claimed; [and] provided that [such] the restraint system can be shown to be in substantial conformity with specifications for [such] any restraint systems set forth by the federal motor vehicle safety standards [which] that were in effect at the time of [such] the purchase."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2018.








Report Title:

Transportation Network Companies; Taxicabs; Child Passenger Restraint Systems; Income Tax Credits



Establishes an income tax credit for transportation network companies or taxicab operators that establish a car seat program in Hawaii. Increases the child passenger restraint system tax credit.




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