Bill Text: HI HB525 | 2020 | Regular Session | Introduced
Bill Title: Relating To Taxation.
Spectrum: Moderate Partisan Bill (Democrat 9-1)
Status: (Introduced - Dead) 2019-12-01 - Carried over to 2020 Regular Session. [HB525 Detail]
Download: Hawaii-2020-HB525-Introduced.html
HOUSE OF REPRESENTATIVES |
H.B. NO. |
525 |
THIRTIETH LEGISLATURE, 2019 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to taxation.
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 I to be appropriately designated and to read as follows:
"§235- Hiring
an elderly individual; income tax credit. (a)
There shall be allowed to each taxpayer subject to the tax imposed by
this chapter, a credit for the hiring of an elderly individual, which 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 shall be equal to
fifty per cent of the qualified wages for the first six months after the
elderly individual is initially hired. A
tax credit 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; provided that in no taxable year shall the total amount of the tax
credit claimed under this section exceed $
per taxpayer.
(c) The following wages paid to an elderly
individual are ineligible to be claimed by the employer for this credit:
(1) Wages paid to
an elderly individual who:
(A) Bears
any of the relationships described in section 152(d)(2)(A) through (G) of the
Internal Revenue Code to the taxpayer, or, if the taxpayer is a corporation, to
an individual who owns, directly or indirectly, more than fifty per cent in
value of the outstanding stock of the corporation (determined with the
application of section 267(c) of the Internal Revenue Code);
(B) If
the taxpayer is an estate or trust, is a grantor, beneficiary, or fiduciary of
the estate or trust, or is an individual who bears any of the relationships
described in section 152(d)(2)(A) through (G) of the Internal Revenue Code to a
grantor, beneficiary, or fiduciary of the estate or trust; or
(C) Is
a dependent (described in section 152(d)(2)(H) of the Internal Revenue Code) of
the taxpayer, or, if the taxpayer is an estate or trust, of a grantor,
beneficiary, or fiduciary of the estate or trust; and
(2) Wages paid to
any elderly individual if, prior to the day the individual is hired by the
employer, the individual had been employed by the employer at any time.
(d) In the case of a successor employer referred
to in section 3306(b)(1) of the Internal Revenue Code, the determination of the
amount of the tax credit allowable under this section with respect to wages
paid by the successor employer shall be made in the same manner as if the wages
were paid by the predecessor employer referred to in section 3306(b)(1) of the
Internal Revenue Code.
(e) Claims for the tax credit under this section,
including any amended claims, shall be filed on or before the end of the
twelfth month following 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 tax
credit.
(f) The director of taxation:
(1) Shall prepare
any forms necessary to claim a credit under this section;
(2) May require a
taxpayer to furnish reasonable information to ascertain the validity of a claim
for credit; and
(3) May adopt rules
pursuant to chapter 91 to effectuate the purposes of this section.
(g) For purposes of this section:
"Elderly individual"
means an individual who is sixty years of age or older.
"Qualified wages" means
wages attributable to work rendered by an elderly individual for the six-month
period after the individual is initially hired.
"Wages" means wages, commissions, fees, salaries, bonuses, and every and all other kinds of remuneration for, or compensation attributable to, services performed by an employee for the employee's employer, including the cash value of all remuneration paid in any medium other than cash and the cost-of-living allowances and other payments included in gross income by section 235-7(b), but excluding income excluded from gross income by section 235-7 or other provisions of this chapter."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2018.
INTRODUCED BY: |
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Report Title:
Taxation; Income Tax Credit; Elderly Persons; Employment
Description:
Provides to a taxpayer who hires an elderly individual a nonrefundable tax credit for the 6-month period after the individual is initially hired by the taxpayer.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.