Bill Text: HI SB1322 | 2013 | Regular Session | Introduced

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Bill Title: Historic Preservation; Income Tax Credit

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2013-01-28 - Referred to TEC, WAM. [SB1322 Detail]

Download: Hawaii-2013-SB1322-Introduced.html

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THE SENATE	S.B. NO.	1322
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII

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 be appropriately designated and to read as follows:

     "§235-     Historic preservation tax credit.  (a)  There shall be allowed to each resident individual and corporate taxpayer who is not claimed or is not otherwise eligible to be claimed as a dependent by another taxpayer for federal or Hawaii state individual income tax purposes, who files an individual or corporate net income tax return for a taxable year, an historic preservation tax credit, 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 tax credit is properly claimed; provided that:

     (1)  A resident individual who has no income or no income taxable under this chapter and who is not claimed or is not otherwise eligible to be claimed as a dependent by a taxpayer for federal or Hawaii state individual income tax purposes may claim this tax credit; and

     (2)  A husband and wife filing separate returns for a taxable year for which a joint return could have been filed by them shall claim only the tax credit to which they would have been entitled had a joint return been filed.

     (b)  The tax credit shall apply to the qualifying costs expended to rehabilitate or preserve historic structures in the State.  The amount of the tax credit shall be          per cent of the taxpayer's qualifying costs; provided that no single claim for a tax credit shall exceed $          .

     (c)  In the case of a partnership, S corporation, estate, or trust, the tax credit is for qualifying costs incurred by the entity for the taxable year.  The costs upon which the tax credit is computed shall be determined at the entity level and the distribution and share of the tax credit shall be determined by rule.

     (d)  To qualify for the income tax credit, the taxpayer shall:

     (1)  Qualify under criteria or rules adopted by the Hawaii historic places review board pursuant to chapter 91, that shall include, but not be limited to:

         (A)  Criteria for qualifying structures;

         (B)  A definition of "qualifying costs";

         (C)  Standards to ensure that the rehabilitation preserves the historic and architectural character of the structure; and

         (D)  A minimum amount, or threshold, required to be invested in the rehabilitation or preservation; and

     (2)  Be in compliance with all applicable federal, state, and county statutes, rules, and regulations.

     (e)  If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of credit over liability shall be refunded to the taxpayer; provided that no refund on account of the tax credit allowed by this section shall be made for amounts less than $1.

     All claims, including any amended claims, for the 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.

     (f)  If at any time, for whatever reason, the taxpayer no longer qualifies for the tax credit claimed under this section, the tax credits shall be recaptured.  The recapture shall be equal to        per cent of the total tax credits claimed under this section.  The amount of the recaptured tax credits shall be added to the taxpayer's tax liability for the taxable year in which the recapture occurs.

     (g)  The director of taxation:

     (1)  Shall prepare any forms necessary to claim a tax credit under this section;

     (2)  May require the taxpayer to provide reasonable information to ascertain the validity of the claim for credit under this section; and

     (3)  May adopt rules pursuant to chapter 91 to effectuate the purposes of this section.

     (h)  The department of taxation shall report to the legislature annually, no later than twenty days prior to the convening of every regular session, on the number of taxpayers claiming the tax credit and the total cost of the tax credit to the State during the past year."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2012.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Historic Preservation; Income Tax Credit

 

Description:

Establishes an income tax credit for the rehabilitation or preservation of historic structures in the State.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.