Bill Text: HI SB3238 | 2024 | Regular Session | Introduced
Bill Title: Relating To The Aquaculture Investment Tax Credit.
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Introduced - Dead) 2024-01-29 - Referred to AEN, WAM. [SB3238 Detail]
Download: Hawaii-2024-SB3238-Introduced.html
|
THE SENATE |
S.B. NO. |
3238 |
|
THIRTY-SECOND LEGISLATURE, 2024 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
relating to the aquaculture investment tax credit.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
"§235- Aquaculture investment tax credit. (a) There shall be allowed to each
taxpayer subject to the taxes imposed by this chapter an aquaculture investment
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
investment was made and the following four years; provided that the credit is
properly claimed. The tax credit shall
be as follows:
(1) In the year the investment was made,
per cent;
(2) In the first year following the year
in which the investment was made, per cent;
(3) In the second year following the investment,
per cent;
(4) In the third year following the investment,
per cent; and
(5) In the fourth year following the
investment, per cent,
of the investment made by the taxpayer in
each qualified aquaculture business, up to a maximum allowed credit in the year
the investment was made, $ ;
in the first year following the year in which the investment was made, $ ;
in the second year following the year in which the investment was made, $ ;
in the third year following the year in which the investment was made, $ ;
and in the fourth year following the year in which the investment was made, $ .
(b) In the case of a partnership,
S corporation, estate, or trust, the tax credit allowable is for qualified
expenses incurred by the entity for the taxable year. The qualified expenses upon which the tax
credit is computed shall be determined at the entity level. Distribution and share of credit shall be
determined by rule.
(c) The credit allowed under this
section shall be claimed against the net income tax liability for the taxable
year. For the purpose of this section,
"net income tax liability" means net income tax liability reduced by
all other credits allowed under this chapter.
(d) If the tax credit under this section exceeds
the taxpayer's income tax liability for any of the five years that the credit
is taken, the excess of the tax credit over liability may be used as a credit
against the taxpayer's income tax liability in subsequent years until
exhausted. 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) If at the close of any taxable year in the
five-year period in subsection (a):
(1) The business no longer qualifies as
a qualified aquaculture business;
(2) The business or an interest in the
business has been sold by the taxpayer investing in the qualified aquaculture
business; or
(3) The taxpayer has withdrawn the
taxpayer's investment wholly or partially from the qualified aquaculture business,
the
credit claimed under this section shall be recaptured. The recapture shall be equal to
per cent of the amount of the total tax credit claimed under this section in
the preceding two taxable years. The
amount of the credit recaptured shall apply only to the investment in the
particular qualified aquaculture business that meets the requirements of
paragraph (1), (2), or (3). The
recapture provisions of this subsection shall not apply to a tax credit claimed
for a qualified aquaculture business that does not fall within the provisions
of paragraph (1), (2), or (3). The
amount of the recaptured tax credit determined under this subsection shall be
added to the taxpayer's tax liability for the taxable year in which the
recapture occurs under this subsection.
(f) Every taxpayer, before March 31 of each year
in which an investment in a qualified aquaculture business was made in the
previous taxable year, shall submit a written, certified statement to the
director of taxation identifying:
(1) Qualified investments, if any,
expended in the previous taxable year; and
(2) The amount of tax credits claimed
pursuant to this section, if any, in the previous taxable year.
(g) The department shall:
(1) Maintain records of the names and
addresses of the taxpayers claiming the credits under this section and the
total amount of the qualified investment costs upon which the tax credit is
based;
(2) Verify the nature and amount of the
qualifying investments;
(3) Total all qualifying and cumulative investments
that the department certifies; and
(4) Certify the amount of the tax credit
for each taxable year and cumulative amount of the tax credit.
Upon
each determination made under this subsection, the department shall issue a
certificate to the taxpayer verifying information submitted to the department,
including qualifying investment amounts, the credit amount certified for each
taxable year, and the cumulative amount of the tax credit during the credit
period. The taxpayer shall file the
certificate with the taxpayer's tax return with the department.
The
director of taxation may assess and collect a fee to offset the costs of
certifying tax credits claims under this section. All fees collected under this section shall
be deposited into the tax administration special fund established under section
235-20.5.
(h) As used in this section:
"Qualified
aquaculture business" means a business engaged in the propagation,
cultivation, or farming of aquatic plants and animals in controlled or selected
environments for research, commercial, or stocking purposes, including
aquaponics or any growing of plants or animals with aquaculture effluent, in
the State."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2024.
|
INTRODUCED BY: |
_____________________________ |
|
|
|
|
|
|
Report Title:
Aquaculture Investment Tax Credit
Description:
For taxable years beginning after 12/31/2024, provides an aquaculture investment tax credit for investments into a qualified aquaculture business.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
