Bill Text: HI SB2644 | 2016 | Regular Session | Amended
Bill Title: Residential Water Conservation System; Tax Credit
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced - Dead) 2016-02-05 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [SB2644 Detail]
Download: Hawaii-2016-SB2644-Amended.html
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THE SENATE |
S.B. NO. |
2644 |
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TWENTY-EIGHTH LEGISLATURE, 2016 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to water conservation.
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- Residential water conservation system cost tax credit. (a) There shall be allowed to each individual taxpayer a residential water conservation system cost tax credit. The credit 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 tax credit shall be fifty per cent of the cost of the construction of a new residential water conservation system incurred after December 31, 2017, and paid during the taxable year up to a maximum of $1,000; provided that the residential water conservation system shall be approved by the department of health.
Multiple owners of a single system shall be entitled to a single tax credit; provided that the tax credit shall be apportioned between the owners in proportion to their contribution to the cost of the system.
(b) No other credit may be claimed under this chapter for any residential water conservation system costs for which a credit is claimed under this section for the taxable year.
(c) If a deduction is taken under section 179 of the Internal Revenue Code of 1986, as amended, no tax credit shall be allowed for that portion of the residential water conservation system costs for which the deduction was taken.
The basis of eligible property for depreciation or accelerated cost recovery system purposes for state income taxes shall be reduced by the amount of credit allowable and claimed. No deduction shall be allowed for that portion of the residential water conservation system costs for which a credit is claimed under this section.
(d) In no event shall the total amount of any tax credit under this section for a taxable year exceed the taxpayer's net income tax liability. No unused tax credit shall be allowed to be carried forward to apply to the taxpayer's succeeding years' tax liability. No unused tax credit shall be allowed by the taxpayer against prior years' tax liability.
All 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:
(1) Prepare any forms that may be necessary to implement the credit under this section; and
(2) Require the taxpayer to furnish information to ascertain the validity of the claim for the credit made under this section.
The director may adopt rules pursuant to chapter 91 to effectuate this section.
(f) As used in this section, "residential water conservation system" means:
(1) The equipment and supplies used to construct a system for the capturing, infiltrating, or utilizing of rainfall from roofs, constructed catchment surfaces, or other hard surfaces on a residential property; or
(2) The equipment and supplies used to construct a system for the collection and reuse of gray water or recycled water, as those terms are defined in section 342D-1, on a residential property."
SECTION 2. Section 342D-1, Hawaii Revised Statutes, is amended by amending the definition of "recycled water" and "reclaimed water" to read as follows:
""Recycled water" and "reclaimed water" mean treated wastewater, rain water, or storm water that by design is intended or used for a beneficial purpose."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2017.
Report Title:
Residential Water Conservation System; Tax Credit
Description:
Creates a non-refundable income tax credit for construction costs of new residential water conservation systems incurred after December 31, 2017. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
