HOUSE OF REPRESENTATIVES

H.B. NO.

799

THIRTIETH LEGISLATURE, 2019

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO TAXATION.

 

 

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

 


SECTION 1. The legislature finds that the costs of weather-related natural disasters may be substantial. Hurricane Katrina caused an estimated $160 billion in damage in 2005. In 2017, Hurricane Harvey and Hurricane Maria caused an estimated $125 billion and $90 billion in damage, respectively.

The legislature further finds that individual mitigation measures reduce the potential danger persons face and save money for state residents. The National Institute of Building Sciences' Natural Hazard Mitigation Saves: 2017 Interim Report found that for every dollar spent on hurricane mitigation measures, five dollars are saved. Further, according to the Hawaii emergency management agency, the State will face a shortage of shelter space in the event of a weather-related natural disaster. This shortage may be partially offset by strengthening residences.

Thus, the purpose of this Act is to incentivize homeowners to implement measures that mitigate the damage that may be caused by hurricanes by providing a tax credit for the purchase and installation of wind resistive devices.

SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"235-   Wind resistive device tax credit. (a) There shall be allowed to each taxpayer subject to the tax imposed by this chapter, a wind resistive device tax credit which shall be applied against 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       per cent of the costs incurred during the taxable year for purchasing and installing wind resistive devices in a non-condominium residential dwelling owned by the taxpayer and located in the State.

(c) Every taxpayer claiming a credit under this section shall file all necessary documentation as required by the insurance commissioner and a written verification by an inspector, who is qualified as determined by the insurance commissioner, stating that the installation of the wind resistive device is complete and is in compliance with the specifications, guidelines, and requirements, as determined pursuant to subsection (d)(1).

(d) The insurance commissioner shall:

(1) Develop and determine, without regard to chapter 91, the description, specifications, guidelines, and requirements for the following:

(A) Uplift restraint ties at roof ridges and roof framing members to wall or beam supports;

(B) Additional fastening of roof sheathing and roof decking for high wind uplift;

(C) Impact and pressure resistant exterior opening protective devices; and

(D) Wall to foundation uplift restraint connections strengthening for wood foundation posts on footings;

provided that the insurance commissioner, in the insurance commissioner's sole discretion, may amend, narrow, or expand the definitions, descriptions, specifications, and requirements of the wind resistive devices;

(2) Certify the purchase and installation of wind resistive devices; and

(3) Certify the amount of the tax credit for each taxpayer.

Upon each determination, the insurance commissioner shall issue a certificate to the taxpayer verifying the purchase and installation of wind resistive devices and the credit amount certified for the taxpayer. The taxpayer shall file the certificate with the taxpayer's tax return with the department.

(e) If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of credit over liability may be used as a credit against the taxpayer's 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.

(f) 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 information to ascertain the validity of the claim for the tax credit made under this section; and

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

(g) For the purposes of this section:

"Costs incurred" means amounts related to the wind resistive devices under subsection (a), including accessories and installation, but does not include the cost of consumer incentive premiums unrelated to the operation of the devices or offered together with the sale of the devices and costs for which another credit is claimed under this chapter.

"Wind resistive devices" means devices and techniques, as identified and determined in accordance with subsection (d)(1), that increase a building's or structure's resistance to damage from wind forces."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on January 1, 2050, and shall apply to taxable years beginning after December 31, 2019.


 


 

Report Title:

Wind Resistive Device Tax Credit; Hurricane Preparation

 

Description:

Establishes a wind resistive device tax credit for the purchase and installation of wind resistive devices in a non-condominium residential dwelling. Requires the Insurance Commissioner to develop and determine the requirements for the wind resistive devices and to certify claims for the tax credit. (HB799 HD1)

 

 

 

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