Bill Text: HI SB789 | 2020 | Regular Session | Amended
Bill Title: Relating To Minimum Wage.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2020-06-22 - Received notice of discharge of all House conferees (Hse. Com. No. 363). [SB789 Detail]
Download: Hawaii-2020-SB789-Amended.html
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THE SENATE |
S.B. NO. |
789 |
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THIRTIETH LEGISLATURE, 2019 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO MINIMUM WAGE.
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 I to be appropriately designated and to read as follows:
"§235- Minimum wage income tax
credit for small businesses. (a)
There shall be allowed to each qualified small business subject to the
tax imposed by this chapter, a credit to offset the increase in minimum hourly
rate that an employer must pay an employee, which shall be deductible from the
net income tax liability of the qualified small business, 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 twenty per cent of the increase of total hourly wages paid to
all employees during the taxable year over the total hourly wages paid in the
prior taxable year. The credit claimed
by each qualified small business shall not exceed $50,000 per taxable year that
the credit is available.
In the case of a partnership, S corporation, or other
pass-through or disregarded entity, eligibility and calculation of the tax
credit shall be determined at the entity level.
(c) If the tax credit under
this section exceeds the taxpayer's income tax liability, 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.
Claims for the tax credit under this section, including any amended
claims, shall be filed on or before the end of the twelfth month following 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 tax credit.
(d) For purposes of
this section, "qualified small business" means a taxpayer that has:
(1) Fifty or fewer
employees; and
(2) No more than
$4,000,000 gross income in the taxable year for which the credit is being
claimed.
(e) The director of
taxation:
(1) Shall
prepare any forms necessary to claim a credit under this section;
(2) May
require a taxpayer to furnish reasonable information to ascertain the validity
of a claim for credit; and
(3) May adopt rules pursuant to chapter 91 to effectuate the purposes of this section.
(f) The credit under
this section may be claimed for the taxable year beginning after December 31,
2019 and for the following four taxable years."
SECTION 2. Section 387-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Except as provided in section 387‑9 and this section, every employer shall pay to each employee employed by the employer, wages at the rate of not less than:
(1) $6.25 per hour beginning January 1, 2003;
(2) $6.75 per hour beginning January 1, 2006;
(3) $7.25 per hour beginning January 1, 2007;
(4) $7.75 per hour beginning January 1, 2015;
(5) $8.50 per hour beginning January 1, 2016;
(6) $9.25 per hour beginning
January 1, 2017; [and]
(7) $10.10
per hour beginning January 1, 2018[.];
(8) $12.00 per hour
beginning January 1, 2020; and
(9) $15.00 per hour beginning January 1, 2023."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on January 1, 2020; provided that section 1 shall apply to taxable years beginning after December 31, 2019.
Report Title:
Minimum Wage; Increase; Tax Credit
Description:
Provides an income tax credit for qualifying small businesses to offset the increase in the minimum hourly rate that employers must pay employees. Increases the minimum wage to $12.00 per hour beginning 1/1/2020 and $15.00 per hour beginning 1/1/2023. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
