Bill Text: HI SB254 | 2010 | Regular Session | Introduced

Hawaii Senate Bill 254 (Prior Session Legislation)

Introduced

Bill Title: Tax Credit; Life-Saving Equipment; Generator; Rechargeable Battery

Spectrum: Partisan Bill (Democrat 9-0)

Status: (Introduced - Dead) 2009-05-11 - Carried over to 2010 Regular Session. [SB254 Detail]

Download: Hawaii-2010-SB254-Introduced.html

Report Title:

Tax Credit; Life-Saving Equipment; Generator; Rechargeable Battery

Description:

Provides a refundable tax credit equal to twenty-five per cent of the actual cost of a new generator or rechargeable battery that is used to power a taxpayer's life-saving or critical health-maintenance equipment at home. Limits the maximum credit allowable for any taxable year to $200.

THE SENATE	S.B. NO.	254
TWENTY-FIFTH LEGISLATURE, 2009
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- Life-saving and critical health-maintenance equipment tax credit. (a) There shall be allowed to each resident individual taxpayer subject to the taxes imposed by this chapter, a life-saving and critical health-maintenance equipment 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 credit is properly claimed.

The amount of the credit shall be equal to twenty-five per cent of the actual cost of a new generator or rechargeable battery that is required to power the taxpayer's life-saving or critical health-maintenance equipment at home during a power outage. The maximum allowable tax credit for a taxpayer during any taxable year shall be $200.

(b) To qualify for the tax credit, a taxpayer shall:

(1) Be a resident individual taxpayer;

(2) Place the generator or rechargeable battery in service in this State for a majority of the taxable year; and

(3) Obtain written substantiation from a physician licensed and certified in this State that the life-saving or critical health-maintenance equipment is reasonably necessary to maintain or save the taxpayer's life or prevent permanent harm to the taxpayer's life.

"Life-saving or critical health-maintenance equipment" means equipment that is designed and intended to be used by persons at home and is reasonably necessary to maintain or save human life or prevent permanent harm to human life.

"Net income tax liability" means net income tax liability reduced by all other credits allowed under this chapter.

(d) The tax credit claimed by a resident individual taxpayer under this section shall be deductible from the taxpayer's net income tax liability, if any, for the tax year in which the credit is properly claimed. If the tax credit under this section exceeds the taxpayer's net income tax liability in any taxable year that the credit is properly claimed, the excess of the tax credit over net income tax liability, if any, shall be refunded to the taxpayer.

Every claim, including amended claims, for a 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.

(e) The director of taxation shall prepare forms as may be necessary to claim a credit under this section. The director may also require the taxpayer to furnish information to ascertain the validity of the claim for credit made under this section, including requiring the taxpayer to have a physician licensed and certified in this State substantiate the taxpayer's claim that life-saving or critical health-maintenance equipment is reasonably necessary for the taxpayer as set forth in subsection (b)(3). The director may also adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2008.