Hawaii 2022 Regular Session

Hawaii House Bill HB1178 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	HOUSE OF REPRESENTATIVES H.B. NO. 1178 THIRTY-FIRST LEGISLATURE, 2021 STATE OF HAWAII A BILL FOR AN ACT relating to tax credits. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
2	2
3	3	HOUSE OF REPRESENTATIVES H.B. NO. 1178
4	4	THIRTY-FIRST LEGISLATURE, 2021
5	5	STATE OF HAWAII
6	6
7	7	HOUSE OF REPRESENTATIVES
8	8
9	9	H.B. NO.
10	10
11	11	1178
12	12
13	13	THIRTY-FIRST LEGISLATURE, 2021
14	14
15	15
16	16
17	17	STATE OF HAWAII
18	18
19	19
20	20
21	21
22	22
23	23
24	24
25	25
26	26
27	27
28	28
29	29
30	30
31	31	A BILL FOR AN ACT
32	32
33	33
34	34
35	35
36	36
37	37	relating to tax credits.
38	38
39	39
40	40
41	41
42	42
43	43	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
44	44
45	45
46	46
47	47	SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to part III to be appropriately designated and to read as follows: "§235- Refundable child tax credit. (a) Each qualifying individual taxpayer may claim a refundable child tax credit. The tax credit, for the appropriate taxable year, shall be twenty per cent of the federal child tax credit allowed and properly claimed under the Internal Revenue Code and reported as such on the individual's federal income tax return. (b) For a part-year resident, the tax credit shall equal the amount of the tax credit calculated in subsection (a) multiplied by the ratio of Hawaii adjusted gross income to federal adjusted gross income. (c) For purposes of this section, "qualifying individual taxpayer" means a taxpayer who: (1) Files a federal income tax return for the taxable year claiming the child tax credit under the Internal Revenue Code; and (2) Files a Hawaii income tax return using the filing status used on the federal income tax return for the taxable year and claiming the same dependents claimed on the federal income tax return for the taxable year. (d) The credit allowed under this section shall be claimed against the net income tax liability for the taxable year. If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of the tax credit over liability shall be refunded to the taxpayer; provided that the tax credit claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer; provided further that no refunds or payment on account of the tax credit allowed by this section shall be made for amounts less than $1. All claims, 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) No credit shall be allowed under this section for any taxable year in the disallowance period. For purposes of this subsection, the disallowance period is: (1) The period of ten taxable years after the most recent taxable year for which there was a final administrative or judicial decision that the taxpayer's claim for credit under this section was due to fraud; and (2) The period of two taxable years after the most recent taxable year for which there was a final administrative or judicial decision disallowing the taxpayer's claim for credit. (f) The director of taxation: (1) Shall prepare any forms necessary to claim a tax credit under this section; (2) May require proof of the claim for the tax credit; (3) Shall alert eligible taxpayers of the tax credit using appropriate and available means; (4) Shall prepare an annual public report to the legislature and the governor containing the: (A) Number of credits granted for the prior calendar year; (B) Total amount of the credits granted; and (C) Average value of the credits granted to taxpayers whose adjusted gross income falls within various income ranges; and (5) May adopt rules pursuant to chapter 91 to effectuate this section. (g) This section shall apply to taxable years beginning after December 31, 2020." SECTION 2. New statutory material is underscored. SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2020. INTRODUCED BY: _____________________________
48	48
49	49	SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to part III to be appropriately designated and to read as follows:
50	50
51	51	"§235- Refundable child tax credit. (a) Each qualifying individual taxpayer may claim a refundable child tax credit. The tax credit, for the appropriate taxable year, shall be twenty per cent of the federal child tax credit allowed and properly claimed under the Internal Revenue Code and reported as such on the individual's federal income tax return.
52	52
53	53	(b) For a part-year resident, the tax credit shall equal the amount of the tax credit calculated in subsection (a) multiplied by the ratio of Hawaii adjusted gross income to federal adjusted gross income.
54	54
55	55	(c) For purposes of this section, "qualifying individual taxpayer" means a taxpayer who:
56	56
57	57	(1) Files a federal income tax return for the taxable year claiming the child tax credit under the Internal Revenue Code; and
58	58
59	59	(2) Files a Hawaii income tax return using the filing status used on the federal income tax return for the taxable year and claiming the same dependents claimed on the federal income tax return for the taxable year.
60	60
61	61	(d) The credit allowed under this section shall be claimed against the net income tax liability for the taxable year. If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of the tax credit over liability shall be refunded to the taxpayer; provided that the tax credit claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer; provided further that no refunds or payment on account of the tax credit allowed by this section shall be made for amounts less than $1. All claims, 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.
62	62
63	63	(e) No credit shall be allowed under this section for any taxable year in the disallowance period. For purposes of this subsection, the disallowance period is:
64	64
65	65	(1) The period of ten taxable years after the most recent taxable year for which there was a final administrative or judicial decision that the taxpayer's claim for credit under this section was due to fraud; and
66	66
67	67	(2) The period of two taxable years after the most recent taxable year for which there was a final administrative or judicial decision disallowing the taxpayer's claim for credit.
68	68
69	69	(f) The director of taxation:
70	70
71	71	(1) Shall prepare any forms necessary to claim a tax credit under this section;
72	72
73	73	(2) May require proof of the claim for the tax credit;
74	74
75	75	(3) Shall alert eligible taxpayers of the tax credit using appropriate and available means;
76	76
77	77	(4) Shall prepare an annual public report to the legislature and the governor containing the:
78	78
79	79	(A) Number of credits granted for the prior calendar year;
80	80
81	81	(B) Total amount of the credits granted; and
82	82
83	83	(C) Average value of the credits granted to taxpayers whose adjusted gross income falls within various income ranges; and
84	84
85	85	(5) May adopt rules pursuant to chapter 91 to effectuate this section.
86	86
87	87	(g) This section shall apply to taxable years beginning after December 31, 2020."
88	88
89	89	SECTION 2. New statutory material is underscored.
90	90
91	91	SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2020.
92	92
93	93
94	94
95	95	INTRODUCED BY: _____________________________
96	96
97	97	INTRODUCED BY:
98	98
99	99	_____________________________
100	100
101	101
102	102
103	103
104	104
105	105	Report Title: Tax Credits; Refundable Child Tax Credit; Federal Child Tax Credit Description: Establishes a refundable income tax credit equal to twenty per cent of the federal child tax credit allowed and properly claimed on a taxpayer's federal tax return. Applies to taxable years beginning after 12/31/2020. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
106	106
107	107
108	108
109	109
110	110
111	111	Report Title:
112	112
113	113	Tax Credits; Refundable Child Tax Credit; Federal Child Tax Credit
114	114
115	115
116	116
117	117	Description:
118	118
119	119	Establishes a refundable income tax credit equal to twenty per cent of the federal child tax credit allowed and properly claimed on a taxpayer's federal tax return. Applies to taxable years beginning after 12/31/2020.
120	120
121	121
122	122
123	123
124	124
125	125
126	126
127	127	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.