Bill Text: HI SB2291 | 2020 | Regular Session | Amended
Bill Title: Relating To Taxation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2020-05-11 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Thielen excused (1). [SB2291 Detail]
Download: Hawaii-2020-SB2291-Amended.html
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THE SENATE |
S.B. NO. |
2291 |
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THIRTIETH LEGISLATURE, 2020 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 1 |
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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 III to be appropriately designated and to read as follows:
"§235- Tax
credit for business-supported child care. (a) There shall be allowed to each taxpayer
subject to the taxes imposed by this chapter, an income tax credit that 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 per
cent of the taxpayer's eligible business child care expenses. In the case of a partnership, S corporation,
estate, or trust, the tax credit shall be based on the eligible business child
care expenses incurred by the entity for the taxable year. The expenses upon which the tax credit is
computed shall be determined at the entity level.
(c) If
the tax credit claimed by the taxpayer exceeds the amount of income tax payment
due from the taxpayer, the excess of the credit over payments due shall be
refunded to the taxpayer; provided that a tax credit under this section
properly claimed by an individual who has no income tax liability shall be paid
to the taxpayer; 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.
(d)
All claims for a tax credit under this section, including amended
claims, shall be filed on or before the end of the twelfth month following the
close of the taxable year for which the tax credit may be claimed. Failure to comply with the foregoing
provision shall constitute a waiver of the right to claim the tax credit.
(e) No
other tax credit or deduction shall be claimed under this chapter for the
certain expenses used to claim a tax credit under this section for the taxable
year.
(f)
The director of taxation:
(1) Shall prepare
any forms necessary to claim a tax credit under this section;
(2) May require the
taxpayer to furnish reasonable information to ascertain the validity of the
claim for the tax credit made under this section; and
(3) May adopt
rules, pursuant to chapter 91, to effectuate this section.
(g) As
used in this section:
"Child care facility" means a licensed or registered child care facility as defined
under section 346-151.
"Eligible
business child care
expenses" means the sum of the amounts a taxpayer paid to a child care
facility in the State to:
(1) Support the
child care needs of the taxpayer's employees in the taxable year, not to exceed
$ per child per
taxable year; and
(2) Purchase child
care enrollment at the child care facility that are actually provided or
reserved for children of the taxpayer's employees, not to exceed $
per taxable year."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect on July 1, 2050, and shall apply to taxable years beginning after December 31, 2020.
Report Title:
Refundable Tax Credit; Business-Supported Child Care
Description:
For taxable years beginning after 12/31/2020, establishes a refundable tax credit equal to an unspecified percentage of eligible child care expenses paid by an employer for its employees' child care needs. Effective 7/1/2050. (HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
