Bill Text: HI HB610 | 2023 | Regular Session | Introduced
Bill Title: Relating To Taxation.
Spectrum: Partisan Bill (Democrat 16-0)
Status: (Engrossed - Dead) 2023-04-28 - Conference committee meeting to reconvene on 04-28-23 4:30PM; Conference Room 309 [HB610 Detail]
Download: Hawaii-2023-HB610-Introduced.html
HOUSE OF REPRESENTATIVES |
H.B. NO. |
610 |
THIRTY-SECOND LEGISLATURE, 2023 |
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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. The purpose of this Act is to establish a farm workforce retention tax credit for farm employers or owners of farm employers.
SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235- Farm
workforce retention tax credit. (a)
There shall be allowed to each qualified taxpayer subject to the tax
imposed by this chapter a farm workforce retention tax credit that shall be
applied to the qualified 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 tax credit amount shall be as follows:
(1) For the taxable year beginning after December 31, 2023: $250 per eligible farm employee employed by the qualified taxpayer;
(2) For the taxable
year beginning after December 31, 2024:
$500 per eligible farm employee employed by the qualified taxpayer;
(3) For the taxable
year beginning after December 31, 2025:
$750 per eligible farm employee employed by the qualified taxpayer;
(4) For the taxable
year beginning after December 31, 2026:
$1,000 per eligible farm employee employed by the qualified taxpayer;
and
(5) For the taxable
year beginning after December 31, 2027, and ending on December 31, 2028: $1,250 per eligible farm employee employed by
the qualified taxpayer.
(c) If a farm employee employed by the qualified
taxpayer becomes unable to work due to a documented illness or
disability, the qualified taxpayer may combine the hours the farm employee was
employed during the taxable year with the hours of another farm employee hired
to replace the ill or disabled farm employee in the same taxable year when
determining whether the farm employee meets the minimum requirement for number
of hours worked per taxable year to meet the definition of "eligible farm
employee" for the purposes of this section. The qualified taxpayer
shall obtain proof of illness or disability for the ill or disabled farm
employee in the form of a written statement from a health care provider
licensed, certified, or otherwise permitted by law to diagnose or treat the
physical or mental condition that led to the claimed illness or
disability. The statement shall include:
(1) The name and a
description of the farm employee's illness or disability;
(2) The health care
provider's medical opinion that the illness or disability prevented the farm
employee from working;
(3) The specific
time period during which the farm employee is or was unable to work due to
illness or disability, to the best of the health care provider's knowledge; and
(4) The following
certification signed by the health care provider: "I hereby certify that, to the best of
my knowledge and belief, the above representations are true, correct, and
complete."
The qualified taxpayer shall retain documentation
of the hours worked and proof of illness or disability for all eligible farm
employees and shall make the documentation and proof available to the
department upon request. Workers who are
part of the H-2A Temporary Agricultural Worker Program that meet the definition
of "eligible farm employee" may be included in the computation of
this tax credit.
(d) In
the case of a partnership, S corporation, estate, trust, the tax credit
allowable shall be for each eligible farm employee employed by the qualified
taxpayer. The cost upon which the credit
is computed shall be determined at the entity level and the distribution and
share of the tax credit shall be determined pursuant to section 704(b) of the
Internal Revenue Code.
(e) The credit under this section shall be
claimed against the net income tax liability for the taxable year. If the tax credit claimed by the qualified taxpayer
under this section exceeds the amount of the income tax payments due from the qualified
taxpayer, the excess of credit over payments due shall be refunded to the
qualified taxpayer; provided that the tax credit properly claimed by a qualified
taxpayer who has no income tax liability shall be paid to the qualified taxpayer;
provided further that no refunds or payments on account of the tax credit
allowed by this section shall be made for amounts less than $1.
(f) The director of taxation:
(1) Shall prepare
any forms that may be necessary to claim a credit under this section;
(2) May require the
qualified taxpayer to furnish information to ascertain the validity of the
claim for credit made under this section; and
(3) May adopt rules
pursuant to chapter 91 to effectuate the purposes of this section.
(g) For the purposes of this section:
"Eligible farm
employee" means an individual who is employed for five hundred hours or
more per taxable year by a farm employer in the State. "Eligible farm employee" does not
include general executive officers of the farm employer.
"Excess federal gross income"
means the amount of federal gross income from all sources for the taxable year
in excess of $30,000.
"Farm employer" means a person:
(1) Who is a corporation, including an S
corporation, sole proprietorship, limited liability company, or a partnership;
and
(2) Whose federal
gross income from farming for the taxable year is at least two-thirds of excess
federal gross income.
"Farming" means the
operation or management of livestock, dairy, poultry, fish, fruit, furbearing
animals, vegetable farms, plantations, ranches, ranges, or orchards.
"Net income tax liability"
means income tax liability reduced by all other credits allowed under this
chapter.
"Owner of a farm employer"
includes shareholders of a Hawaii S corporation, partners in a partnership,
members of a limited liability company, or beneficiaries of an estate or trust.
"Qualified taxpayer"
means a farm employer or an owner of a farm employer."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2023.
INTRODUCED BY: |
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Report Title:
Farm Workforce Retention Tax Credit; Farm Employment
Description:
Establishes the farm workforce retention tax credit for farm employers or owners of farm employers who employ eligible farm employees.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.