THE SENATE

S.B. NO.

921

THIRTY-FIRST LEGISLATURE, 2021

S.D. 2

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 235-17, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (b) to read:

"(b) The credit allowed under this section shall be claimed against the net income tax liability for the taxable year.

Notwithstanding any law to the contrary, the department shall file a public disclosure identifying the name of each taxpayer who received the tax credit and the total amount of tax credit received. The public disclosure shall be filed no later than days after the department's processing of the return in which the credit is claimed.

For the purposes of this section, "net income tax liability" means net income tax liability reduced by all other credits allowed under this chapter."

2. By amending subsections (i) and (j) to read:

"(i) The department of business, economic development, and tourism shall:

(1) Maintain records of the names of the taxpayers and qualified productions thereof claiming the tax credits under subsection (a);

(2) Obtain and total the aggregate amounts of all qualified production costs per qualified production and per qualified production per taxable year;

(3) Provide a letter to the director of taxation specifying the amount of the tax credit per qualified production for each taxable year that a tax credit is claimed and the cumulative amount of the tax credit for all years claimed; and

(4) Submit a report to the legislature no later than twenty days prior to the convening of each regular session detailing the non-aggregated qualified production costs that form the basis of the tax credit claims and expenditures, itemized by taxpayer[, in a redacted format to preserve the confidentiality of the taxpayers claiming the credit].

Upon each determination required under this subsection, the department of business, economic development, and tourism shall issue a letter to the taxpayer, regarding the qualified production, specifying the qualified production costs and the tax credit amount qualified for in each taxable year a tax credit is claimed. The taxpayer for each qualified production shall file the letter with the taxpayer's tax return for the qualified production to the department of taxation. Notwithstanding the authority of the department of business, economic development, and tourism under this section, the director of taxation may audit and adjust the tax credit amount to conform to the information filed by the taxpayer.

(j) Total tax credits claimed per qualified production shall not exceed [$15,000,000.] $12,000,000."

SECTION 2. Section 235-116, Hawaii Revised Statutes, is amended to read as follows:

"235-116 Disclosure of returns unlawful; penalty. [All] (a) Except as provided in subsection (b), all tax returns and return information required to be filed under this chapter shall be confidential, including any copy of any portion of a federal return that may be attached to a state tax return, or any information reflected in the copy of the federal return. [It] Except as provided in subsection (b), it shall be unlawful for any person, or any officer or employee of the State, including the auditor or the auditor's agent with regard to tax return information obtained pursuant to section 23-5(a), to make known intentionally information imparted by any income tax return or estimate made under sections 235-92, 235-94, 235-95, and 235-97 or wilfully to permit any income tax return or estimate so made or copy thereof to be seen or examined by any person other than the taxpayer or the taxpayer's authorized agent, persons duly authorized by the State in connection with their official duties, the Multistate Tax Commission or the authorized representative thereof, except as otherwise provided by law.

(b) Subsection (a) shall not apply to the extent necessary for the department to file the public disclosure required by section 235-17.

(c) Any offense against the [foregoing] provisions in subsection (a) shall be punishable as a class C felony."

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

SECTION 4. This Act shall take effect on July 1, 2050, and shall apply to taxable years beginning after December 31, 2020.


 


 

Report Title:

Motion Picture, Digital Media, and Film Production Income Tax Credit; DOTAX; Public Disclosure

 

Description:

Amends the motion picture, digital media, and film production income tax credit by reducing the cap amount per qualified production to $12,000,000. Requires the Department of Taxation to make a public disclosure identifying the names of the taxpayers who are receiving the tax credits and the total amount of tax credit received. Establishes an exception to the general prohibition against the Department of Taxation disclosing tax returns and return information. Effective 7/1/2050. (SD2)

 

 

 

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