Bill Text: HI HB1557 | 2022 | Regular Session | Introduced


Bill Title: Relating To Taxation.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-02-08 - The committee(s) on HHH recommend(s) that the measure be deferred. [HB1557 Detail]

Download: Hawaii-2022-HB1557-Introduced.html

HOUSE OF REPRESENTATIVES

H.B. NO.

1557

THIRTY-FIRST LEGISLATURE, 2022

 

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 State is experiencing a historic blood shortage.  Due to fears of the coronavirus disease 2019 (COVID-19) pandemic, blood bank donations decreased substantially in 2021.

     The legislature further finds that the Blood Bank of Hawaii is the sole provider of blood to the eighteen civilian hospitals in the State and one on Guam.  Regular inventory maintenance requires one hundred and fifty donors every day.  According to the Blood Bank of Hawaii, it has been forced to undersupply the State's hospitals, leaving them with between sixty and eighty per cent of their normal blood supply.  The legislature finds that the blood supply shortage is a health crisis and poses a significant risk to those who suffer medical emergencies that require blood trasfusions.

     This purpose of this Act is to establish a blood drive tax credit to promote employer-sponsored blood drives throughout the State.

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

     "§235-    Tax credit for employer-hosted blood donation drives.  (a)  For taxable years beginning after December 31, 2021, but before January 1, 2028, there shall be allowed to each taxpayer subject to the tax imposed by this chapter, a credit for each verified donation of blood made by the taxpayer's employee as part of a blood donation drive.  The credit 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)  The amount of the credit determined under this section for the taxable year shall be $           for each verified donation.  The total amount of credits authorized by this section shall be adjusted annually to limit the annual amount of credits to $          .  Each year, the department shall calculate and publish a percentage by which the credits authorized by this section shall be reduced so the total amount of credits used to offset tax liability does not exceed $           per year.  The formula to be used for the annual percentage adjustment shall be $           divided by the credits claimed in the immediately preceding year.

     (c)  The credit allowed under this section shall be claimed against net income tax liability for the taxable year.  A tax credit under this section that exceeds the taxpayer's income tax liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted.

     (d)  All claims for tax credits under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credits may be claimed.  Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

     (e)  No deduction shall be allowed for that portion of the wages or salaries paid or incurred for the taxable year that is equal to the amount of the credit determined under this section.

     (f)  The director of taxation may adopt any rules under chapter 91 and forms necessary to carry out this section.

     (g)  For purposes of this section:

     "Blood donation" means the voluntary and uncompensated

donation of whole blood, or specific components of blood, by the taxpayer's employee, drawn for use by a nonprofit blood bank organization as part of a blood drive.

     "Blood donation drive" means a function held on a specific date and time, which is organized by a nonprofit blood bank organization in coordination with an employer or group of employers and is closed to nonemployees.

     "Employee" means an individual employed by an employer authorized to claim a credit pursuant to this section.

     "Employer" means:

     (1)  The person for whom an individual performs or performed any service, of whatever nature, as the employee of that person;

     (2)  The person having control of the payment of the wages if the employer as defined in paragraph (1) does not have control thereof; and

     (3)  Any person subject to the jurisdiction of the State and paying wages on behalf of an employer as defined in paragraph (2) if the employer is not subject to the jurisdiction of the State; provided that the term "employer" shall not include any government that is not subject to the laws of the State except as, and to the extent that, it consents to the application of sections 235-61 to 235-67 to it.

     "Nonprofit blood bank organization" means an entity that is organized and operated in accordance with section 501(c)(3) of the Internal Revenue Code of 1986, as amended, and for the purpose of providing a safe and adequate blood supply, blood products, and blood related transfusion services to patients in the State.

     "Verified donation" means a blood donation by an employee made during a blood drive that is documented by an employer."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2021, but before January 1, 2028.

 

INTRODUCED BY:

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Report Title:

Blood Drive; Tax Credit

 

Description:

Establishes a tax credit for verified employee blood donations made at an employer sponsored blood drive.  Applies to taxable years 2022-2027.

 

 

 

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

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