HOUSE OF REPRESENTATIVES	H.B. NO.	962
TWENTY-SIXTH LEGISLATURE, 2011		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO TAXATION.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  Section 235-2.4, Hawaii Revised Statutes, is amended by amending subsection (l) to read as follows:

     "(l)  Section 179 (with respect to the election to expense certain depreciable business assets) of the Internal Revenue Code shall be operative for purposes of this chapter[, except that provisions relating to:

     (1)  The increase of the maximum deduction to $100,000 for taxable years beginning after 2002 and before 2008, and the increase of the maximum deduction to $125,000 for taxable years beginning after 2006 and before 2011, in section 179(b)(1);

     (2)  The increase of the qualifying investment amount to $400,000 for taxable years beginning after 2002 and before 2008, and the increase of the qualifying investment amount to $500,000 for taxable years beginning after 2006 and before 2011, in section 179(b)(2);

     (3)  The increase of the maximum deduction to $250,000 and the increase of the qualifying investment amount to $800,000 for taxable years beginning in 2008 or 2009, in section 179(b)(7);

     (4)  Defining section 179 property to include computer software in section 179(d)(1);

     (5)  Inflation adjustments in section 179(b)(5);

     (6)  Irrevocable election in section 179(c)(2); and

     (7)  Special rules for qualified disaster assistance property in section 179(e),

shall not be operative for the purposes of this chapter]."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2112.

 

 

Report Title:

Income Tax; Internal Revenue Code; Depreciation

 

Description:

Conforms state income tax law with section 179 of the Internal Revenue Code relating to expensing of certain depreciable business assets.  Effective July 1, 2112.  (HB962 HD1)

 

 

 

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