Bill Text: HI HB488 | 2018 | Regular Session | Amended
Bill Title: Relating To Housing.
Spectrum: Partisan Bill (Democrat 11-0)
Status: (Engrossed - Dead) 2018-03-15 - Received notice of discharge of conferees (Hse. Com. No. 385). [HB488 Detail]
Download: Hawaii-2018-HB488-Amended.html
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
488 |
|
TWENTY-NINTH LEGISLATURE, 2017 |
H.D. 2 |
|
|
STATE OF HAWAII |
S.D. 2 |
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO HOUSING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that Hawaii's housing market suffers from a persistent shortage of housing, particularly housing that is affordable for Hawaii's workforce and lower income groups. Approximately thirty-six per cent of Hawaii's households are cost-burdened, meaning that these households pay more than thirty per cent of their income on housing costs. About half of these households pay more than fifty per cent of their income on housing. The Hawai'i Housing Planning Study 2016 reports that approximately 24,551 housing units are estimated to be needed statewide from 2016 to 2020. Of this total, approximately 13,500 units, or fifty-five per cent, are needed for households earning eighty per cent and below the area median income (AMI). Typically, these are rental units.
The purpose of this Act is to increase the availability of and access to housing stock in the State by encouraging investment in affordable housing development projects by expanding the pool of investors that may qualify for low-income housing tax credits.
SECTION 2. Section 235-110.8, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (f) to read:
"(f) For the purposes of this section, the determination of:
(1) Qualified basis and qualified low-income building
shall be made under section 42(c)[;] of the Internal Revenue Code;
(2) Eligible basis shall be made under section 42(d)[;]
of the Internal Revenue Code;
(3) Qualified low-income housing project shall be
made under section 42(g)[;] of the Internal Revenue Code; and
(4) Recapture of credit shall be made under section
42(j)[,] of the Internal Revenue Code, except that the tax for
the taxable year shall be increased under section 42(j)(1) of the Internal
Revenue Code only with respect to credits that were used to reduce state
income taxes[; and
(5) Application of at-risk rules shall be
made under section 42(k);
of the Internal Revenue Code]."
2. By amending subsection (i) to read:
"(i) The credit allowed under this section shall be claimed against net income tax liability for the taxable year. For the purpose of deducting this tax credit, net income tax liability means net income tax liability reduced by all other credits allowed the taxpayer under this chapter.
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. All 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 properly and timely claim the credit shall constitute a waiver of the right to claim the credit. A taxpayer may claim a credit under this section only if the building or project is a qualified low-income housing building or a qualified low-income housing project under section 42 of the Internal Revenue Code.
Section 42(k) (with respect to application
of at-risk rules), section 465 (with respect to deductions limited to amount of
risk), and section 469 (with respect to passive activity losses and credits
limited) of the Internal Revenue Code shall not be applied [in] with
respect to investments in buildings and projects claiming the credit under
this section."
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; provided that:
(1) Section 2 of this Act shall apply to qualified low-income buildings awarded credits beginning after December 31, 2050; and
(2) The amendments made in section 2 of this Act shall not be repealed when section 235-110.8, Hawaii Revised Statutes, is reenacted on December 31, 2021, pursuant to Act 129, Session Laws of Hawaii 2016.
Report Title:
Low-income Housing Tax Credit
Description:
Specifies that certain provisions of the Internal Revenue Code related to at-risk rules and deductions and to passive activity losses do not apply with respect to claims from the state low-income housing tax credit. 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.
