Bill Text: HI HB1620 | 2016 | Regular Session | Amended
Bill Title: Plastic Water Catchment System Tax Credit; Income Taxation
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-02-19 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Nakashima, Thielen, Tokioka excused (3). [HB1620 Detail]
Download: Hawaii-2016-HB1620-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1620 |
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TWENTY-EIGHTH LEGISLATURE, 2016 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO TAX CREDIT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235- Plastic water catchment system; income tax credit. (a) Each individual taxpayer who files an individual net income tax return for a taxable year may claim a tax credit under this section against the Hawaii state individual net income tax. The tax credit may be claimed for each eligible plastic water catchment system installed by the taxpayer at the taxpayer's domicile in the State during the taxable year.
(b) The amount of credit allowed for each eligible plastic water catchment system shall be twenty per cent of the cost of the plastic water catchment system.
(c) For the purposes of this section:
"Domicile" means the place of an individual's true, fixed, and permanent home, and the principal establishment to which the individual has the intention of returning whenever the individual is absent.
"Household use" means any use to which water is commonly put in a residential setting.
"Plastic water catchment system" means a water catchment system constructed primarily out of plastic that is attached to a domicile's rain gutter system for the purpose of capturing and storing rainwater for household use or fire suppression.
(d) The director of taxation shall prepare any forms that may be necessary to claim a tax credit under this section. The director may also require the taxpayer to furnish reasonable information to ascertain the validity of the claim for credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91.
(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, unless otherwise elected by the taxpayer pursuant to subsection (f). 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 this subsection shall constitute a waiver of the right to claim the credit.
(f) Notwithstanding subsection (e), for any plastic water catchment system, an individual taxpayer may elect to have any excess of the credit over payments due refunded to the taxpayer, provided that tax credits properly claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer, and provided further that no refund on account of the tax credit allowed by this section shall be made for amounts less than $1. Failure to elect to claim any excess credit as refundable within the time period established by the director of taxation pursuant to subsection (d) shall constitute a waiver of the right to claim any excess credit available under this section as refundable.
(g) To the extent feasible, the department shall assist with data collection on the following for each taxable year:
(1) The number of plastic water catchment systems that have qualified for a tax credit during the calendar year; and
(2) The total cost of the tax credit to the State during the taxable year.
(h) Each county shall determine and certify the eligibility of a plastic water catchment system for the tax credit."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2017.
Report Title:
Plastic Water Catchment System Tax Credit; Income Taxation
Description:
Establishes a tax credit for individual taxpayers within the State who install plastic water catchments on the properties at which they reside. Allows taxpayer to elect to make the tax credit refundable. (HB1620 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
