Bill Text: HI SB2029 | 2018 | Regular Session | Amended
Bill Title: Relating To Child Care.
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Introduced - Dead) 2018-02-02 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [SB2029 Detail]
Download: Hawaii-2018-SB2029-Amended.html
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THE SENATE |
S.B. NO. |
2029 |
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TWENTY-NINTH LEGISLATURE, 2018 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CHILD CARE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to provide tax relief to defray child care costs for working families in the State and thereby make it easier for parents to work.
SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235- Child
tax credit. (a) For each resident taxpayer who files an
individual income tax return for a taxable year, 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, and who maintains a household that
includes as a member one or more qualifying relatives, there shall be allowed
as a credit against the tax imposed by this chapter for the taxable year $1,000
per qualifying relative.
(b) For the purposes of this section,
"qualifying relative" means an individual who:
(1) Is the taxpayer's child, stepchild, foster child, sibling, or
step-sibling, or a descendant of any of these, including any child lawfully
placed with the taxpayer for adoption;
(2) Was under age seventeen at the end of the taxable year for which
the credit is claimed;
(3) Did not provide more than half of the individual's own support;
(4) Is claimed as a dependent on the taxpayer's state income tax
return; and
(5) Is a resident of the State of Hawaii and resided with the
taxpayer for more than half of the taxable year for which the credit is
claimed.
(c) A tax credit described in subsection (a) may
only be claimed by an individual filing an individual return with a Hawaii adjusted
gross income of less than $75,000, or by a married couple filing a joint return
with a Hawaii adjusted gross income of less than $125,000.
(d)
The tax credits shall be deductible from the taxpayer's individual net
income tax for the tax year in which the credits are properly claimed; provided
that a married couple filing separate returns for a taxable year for which a
joint return could have been made by them shall claim only the tax credits to
which they would have been entitled had a joint return been filed. In the event the allowed tax
credits under subsection (a) exceed the amount of the income tax payments due
from the taxpayer, the excess of credits over payments due shall be refunded to
the taxpayer; provided that allowed tax credits properly claimed by an
individual who has no income tax liability shall be paid to the individual; provided
further that no refunds or payments on account of the tax credits allowed by
this section shall be made for amounts less than $1.
(e) The director of taxation shall prepare and
prescribe the appropriate form or forms to be used to claim credits pursuant to
this section, may require proof of the claim for tax credits, and may adopt
rules pursuant to chapter 91.
(f) All of the provisions relating to assessments
and refunds under this chapter and under section 231-23(c)(1) shall apply to
the tax credits in this section.
(g) Claims for tax credits under this section,
including any amended claims thereof, shall be filed on or before the end of
the twelfth month following the taxable year for which the credit may be
claimed."
SECTION 3. Section 235-55.6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Allowance of credit.
(1) In general. For each resident taxpayer, who files an individual income tax return for a taxable year, and 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 maintains a household which includes as a member one or more qualifying individuals (as defined in subsection (b)(1)), there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the applicable percentage of the employment-related expenses (as defined in subsection (b)(2)) paid by the individual during the taxable year. If the tax credit claimed by a resident taxpayer exceeds the amount of income tax payment due from the resident taxpayer, the excess of the credit over payments due shall be refunded to the resident taxpayer; provided that tax credit properly claimed by a resident individual who has no income tax liability shall be paid to the resident individual; and provided further that no refunds or payment on account of the tax credit allowed by this section shall be made for amounts less than $1.
(2) Applicable percentage. For purposes of paragraph (1), the taxpayer's applicable percentage shall be determined as follows:
Adjusted
gross income Applicable percentage
Not
over [$25,000] $22,000 [25%]
30%
Over
$22,000 but 25%
not
over $25,000
Over
$25,000 but 24%
not over
$30,000
Over
$30,000 but 23%
not over
$35,000
Over
$35,000 but 22%
not
over $40,000
Over
$40,000 [but [21%]
not
over $45,000
Over
$45,000] but 20%
not
over $50,000
Over
$50,000 15%."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall apply to taxable years beginning after December 31, 2018.
Report Title:
Income Tax Credit; Child Care; Working Families; Child Tax Credit
Description:
Establishes a new child tax credit of $1,000 and changes percentages of costs for household and dependent care services that may be claimed as tax credits by families in certain income brackets. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
