Bill Text: HI SB2701 | 2018 | Regular Session | Introduced
Bill Title: Relating To Income Tax Credit.
Spectrum: Partisan Bill (Democrat 16-0)
Status: (Introduced - Dead) 2018-01-24 - Referred to CPH, WAM. [SB2701 Detail]
Download: Hawaii-2018-SB2701-Introduced.html
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THE SENATE |
S.B. NO. |
2701 |
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TWENTY-NINTH LEGISLATURE, 2018 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to income tax credit.
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- Automatic fire sprinkler system; income
tax credit. (a) There shall be allowed to each qualified
taxpayer subject to the tax imposed under this chapter, an automatic fire
sprinkler system income tax credit that shall be deductible from the qualified
taxpayer's net income tax liability, if any, imposed by this chapter for the
taxable year in which the credit is properly claimed.
(b) In the case of a partnership, S corporation,
estate, or trust, the tax credit allowable is for qualified costs incurred by
the entity for the taxable year. The qualified
costs upon which the tax credit is computed shall be determined at the entity
level. Distribution and share of credit
shall be determined pursuant to section 704(b) of the Internal Revenue Code.
(c) The automatic fire sprinkler system tax
credit shall be equal to twenty per cent of the qualified costs of the
automatic fire sprinkler system; provided that:
(1) The tax credit
shall not exceed $1,000 in each taxable year for each individual automatic fire
sprinkler system;
(2) The tax credit
may be claimed for each taxable year up to five consecutive taxable years
immediately after the automatic fire sprinkler system is placed in service;
provided that the qualified taxpayer shall not be allowed to claim the credit
after the fifth taxable year; and
(3) The excess of
credits over a qualified taxpayer's individual or corporate income tax
liability for any taxable year shall not be refunded to the qualified taxpayer.
(d) All claims for the 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 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:
(1) Shall prepare
any forms that may be necessary to claim a tax credit under this section;
(2) May require the
qualified 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
under chapter 91 necessary to effectuate the purposes of this section.
(f) As used in this section:
"Automatic fire sprinkler
system" means an integrated system of underground and overhead piping
designed in accordance with fire protection engineering standards. The portion of the sprinkler system above ground
is a network of specially sized or hydraulically designed piping installed in a
building, a structure, or area, generally overhead and to which sprinklers are
connected in a systematic pattern. The
valve controlling each system riser is located in the system riser or its
supply piping. Each sprinkler system
riser includes a device for activating an alarm when the system is in
operation. The device is normally
activated by heat from a fire and discharges water over the fire area.
"Qualified costs" means costs incurred in purchasing or otherwise acquiring an automatic fire sprinkler system, including construction costs, accessories, and installation, for use in any apartment or condominium built before 1975.
"Qualified taxpayer"
means an individual who is a resident of the State and:
(1) Is the only
member of a family of one and has an income of not more than eighty per cent of
the area median income, as determined by the United States Department of
Housing and Urban Development, for a family of one; or
(2) Is part of a
family with an income of not more than eighty per cent of the area median
income, as determined by the United States Department of Housing and Urban
Development, for a family of the same size."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2017.
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INTRODUCED BY: |
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Report Title:
Income Tax Credit; Automatic Fire Sprinkler System; Qualified Taxpayer; Condominium
Description:
Provides an income tax credit for qualified taxpayers, with incomes of not more than eighty per cent of the area median income, for qualified costs of an automatic fire sprinkler system installed and placed into any apartment or condominium built before 1975.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
