Bill Text: HI HB351 | 2024 | Regular Session | Amended
Bill Title: Relating To Tax Credits.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2023-12-11 - Carried over to 2024 Regular Session. [HB351 Detail]
Download: Hawaii-2024-HB351-Amended.html
HOUSE OF REPRESENTATIVES |
H.B. NO. |
351 |
THIRTY-SECOND LEGISLATURE, 2023 |
H.D. 2 |
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STATE OF HAWAII |
S.D. 1 |
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A BILL FOR AN ACT
RELATING TO TAX CREDITS.
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 part III to be appropriately designated and to read as follows:
"§235- Fire
prevention and fire safety system in condominiums; maintenance fee increase; special
assessment; tax credit. (a)
A qualified taxpayer who owns a unit for which the condominium association
is increasing the maintenance fee or imposing a special assessment to comply
with a county ordinance requiring an automatic fire sprinkler system or
alternative fire prevention and fire safety system may claim a nonrefundable
tax credit equal to the amount by which the maintenance fee increased, the
special assessment imposed, or the amount actually paid by the taxpayer, but
not to exceed $ ; provided
that no more than one nonrefundable tax credit may be claimed per unit. The aggregate amount of tax credits claimed
under this section shall not exceed
$ for each taxable
year.
(b) The credit allowed under this section shall
be claimed against the taxpayer's net income tax liability for the taxable year
in which the special assessment or increase in the maintenance fee was imposed
and paid. If the tax credit under this
section exceeds the taxpayer's income tax liability, the excess of the tax
credit over liability may be used as a credit against the taxpayer's net 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.
(c) The director of taxation:
(1) Shall prepare
any forms necessary to claim a tax credit under this section;
(2) May require
proof of the claim for the tax credit; and
(3) May adopt rules
pursuant to chapter 91 to effectuate this section.
(d) The department shall:
(1) Maintain
records of the names and addresses of the taxpayers claiming the credits under
this section and the total amount of the maintenance fee increases and special
assessments paid upon which the tax credit is based;
(2) Verify the nature
and amount of the maintenance fee increases and special assessments claimed;
(3) Total all maintenance
fee increases and special assessments claimed; and
(4) Certify the
total amount of the tax credit for each taxable year.
(e) For the purposes of this section:
"Alternative fire
prevention and fire safety system" means a building's safety features
and fire protection systems in compliance with the applicable county fire code
and county building code that provide a minimum level of fire and life safety
to occupants and fire fighters, as approved by the county in which the
condominium is located.
"Association" has the
same meaning as in section 514B-3.
"Automatic fire
sprinkler system" means automatic sprinklers installed and maintained
in full operating condition in accordance with the applicable county fire code
and as approved by the county in which the condominium is located.
"Condominium" has the
same meaning as in section 514B-3.
"Net income tax
liability" means net income tax liability reduced by all other credits
allowed under this chapter.
"Qualified taxpayer"
means a person subject to the taxes imposed by this chapter and who is:
(1) Filing individually
with a gross income equal to or less than $100,000;
(2) Married filing
separately with a gross income equal to or less than $150,000; or
(3) Married filing
jointly with a combined income equal to or less than $200,000.
"Unit" has the same meaning as in section 514B-3."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect on June 30, 3000,
and shall apply to taxable years beginning after December 31, 2023.
Report Title:
Fire
Prevention and Fire Safety System; Condominium Association; Maintenance Fee
Increase; Special Assessment; Income Tax Credit
Description:
Establishes a nonrefundable income tax credit for owners of condominium units whose condominium association is increasing maintenance fees or imposing a special assessment to comply with a county ordinance requiring an automatic fire sprinkler system or alternative fire prevention and fire safety system, to be applied to taxable years beginning after December 31, 2023. Effective 6/30/3000. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.