HOUSE OF REPRESENTATIVES
TWENTY-SEVENTH LEGISLATURE, 2014
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO INCOME TAX CREDITS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 235-55.7, Hawaii Revised Statutes, is amended to read as follows:
"§235-55.7 Income tax credit for low-income household renters. (a) As used in this section:
(1) "Adjusted gross income" is defined by section 235-1.
(2) "Consumer Price Index" means the Consumer Price Index for All Urban Consumers published by the United States Department of Labor.
(2)] (3) "Qualified
exemption" includes those exemptions permitted under this chapter;
provided that a person for whom exemption is claimed has physically resided in
the State for more than nine months during the taxable year; and provided that
multiple exemption shall not be granted because of deficiencies in vision,
hearing, or other disability.
(3)] (4) "Rent" means the
amount paid in cash in any taxable year for the occupancy of a dwelling place
which is used by a resident taxpayer or the resident taxpayer's immediate
family as the principal residence in this State. Rent is limited to the amount
paid for the occupancy of the dwelling place only, and is exclusive of charges
for utilities, parking stalls, storage of goods, yard services, furniture,
furnishings, and the like. Rent shall not include any rental claimed as a
deduction from gross income or adjusted gross income for income tax purposes,
any ground rental paid for use of land only, and any rent allowance or
(b) Each resident taxpayer who occupies and pays rent for real property within the State as the resident taxpayer's residence or the residence of the resident taxpayer's immediate family which is not partially or wholly exempted from real property tax, who is not eligible to be claimed as a dependent for federal or state income taxes by another, and who files an individual net income tax return for a taxable year, may claim a tax credit under this section against the resident taxpayer's Hawaii state individual net income tax.
(c) Each taxpayer with an adjusted gross
income of less than [
$30,000] $59,700 who has paid more than
$1,000 in rent during the taxable year for which the credit is claimed may
claim a tax credit of [ $50] $146 multiplied by the number of
qualified exemptions to which the taxpayer is entitled; provided each taxpayer
sixty-five years of age or over may claim double the tax credit; and provided
that a resident individual who has no income or no income taxable under this
chapter may also claim the tax credit as set forth in this section.
(d) For each taxable year beginning after December 31, 2014, each dollar amount contained in subsection (c) shall be increased by an amount equal to such dollar amount, multiplied by the percentage, if any, by which the Consumer Price Index for the preceding calendar year exceeds the Consumer Price Index for the calendar year 2015.
(d)] (e) If a rental unit is
occupied by two or more individuals, and more than one individual is able to
qualify as a claimant, the claim for credit shall be based upon a pro rata
share of the rent paid.
(e)] (f) The tax credits shall
be deductible from the taxpayer's individual net income tax for the tax year in
which the credits are properly claimed; provided that a husband and wife filing
separate returns for a taxable year for which a joint return could have been
made by them shall claim only the tax credits to which they would have been
entitled had a joint return been filed. In the event the allowed tax credits
exceed the amount of the income tax payments due from the taxpayer, the excess
of credits over payments due shall be refunded to the taxpayer; provided that
allowed tax credits properly claimed by an individual who has no income tax
liability shall be paid to the individual; and provided further that no refunds
or payments on account of the tax credits allowed by this section shall be made
for amounts less than $1.
(f)] (g) The director of
taxation shall prepare and prescribe the appropriate form or forms to be used
herein, may require proof of the claim for tax credits, and may adopt rules
pursuant to chapter 91.
(g)] (h) All of the provisions
relating to assessments and refunds under this chapter and under section
231-23(c)(1) shall apply to the tax credits hereunder.
(h)] (i) Claims for tax credits
under this section, including any amended claims thereof, shall be filed on or
before the end of the twelfth month following the taxable year for which the
credit may be claimed."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect on July 1, 2050, and shall apply to taxable years beginning after .
Income Tax Credit; Low-Income Household Renters
Amends income tax credit for low-income household renters to adjust for inflation. Effective July 1, 2050. (HB1808 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.