| 47 | | - | SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows: "§235- Teacher expenses; tax credit. (a) There shall be allowed to each eligible educator subject to the tax imposed by this chapter a nonrefundable tax credit for qualifying expenses that shall be deductible from the eligible educator's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed. (b) The amount of the tax credit shall be equal to the amount expended for qualifying expenses in a taxable year; provided that the credit shall not exceed $750 per taxable year. (c) An eligible educator claiming a credit under this section shall obtain a written certificate from the school or schools at which the eligible educator is employed that verifies the: (1) Amount of the qualifying expenses paid or incurred by the eligible educator; and (2) Employment of the eligible educator during the period in which the materials or services purchased were used or applied. The eligible educator shall file the certificate with the educator's tax return with the department. (d) If the tax credit under this section exceeds the eligible educator's net income tax liability, the excess of credit over liability may be used as a tax credit against the eligible educator's net income tax liability in subsequent years until exhausted. (e) All claims for a 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 tax credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the tax credit. (f) No other tax credit or deduction shall be claimed under this chapter for the certain expenses used to claim a tax credit under this section for the taxable year. (g) The director of taxation: (1) Shall prepare any forms necessary to claim a tax credit under this section; (2) May require the eligible educator to furnish reasonable information to ascertain the validity of the claim for the tax credit made under this section; and (3) May adopt rules, pursuant to chapter 91, to effectuate the purposes of this section. (h) As used in this section: "Eligible educator" means, with respect to any taxable year, an individual who is a pre-kindergarten through twelfth‑grade teacher, instructor, counselor, principal, or aide in a school for at least nine hundred hours during a school year. "Personal protective equipment" includes gloves, medical masks, N95 respirators, eye protection, gowns and aprons, boots or closed-toe work shoes, cleaning detergents, hand sanitizers, and cleaning products and tools. "Qualifying expenses" means expenses paid or incurred by an eligible educator in connection with: (1) Books; (2) Supplies, other than athletic supplies for courses of instruction in health or physical education; (3) Computer equipment, including related software and services; (4) Supplementary materials used in the classroom; (5) Professional-development courses related to the curriculum in which the eligible educator provides instruction; and (6) Supplies, including personal protective equipment, purchased from March 21, 2020, through June 30, 2021, for the purpose of reducing the risk of coronavirus disease 2019 transmission on the premises of the school or schools at which the eligible educator is employed." SECTION 2. New statutory material is underscored. SECTION 3. This Act shall take effect on July 1, 2050, and shall apply to taxable years beginning after December 31, 2021. |
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| 47 | + | SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows: "§235- Teacher expenses; tax credit. (a) There shall be allowed to each qualifying taxpayer subject to the tax imposed by this chapter a nonrefundable tax credit for qualifying expenses 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 credit is properly claimed. (b) The amount of the tax credit shall be equal to the amount expended for qualifying expenses in a taxable year; provided that the credit shall not exceed $750 per taxable year. (c) A qualifying taxpayer claiming a credit under this section shall obtain a written certificate from the school or schools at which the taxpayer is employed that verifies the: (1) Amount of the qualifying expenses paid or incurred by the qualifying taxpayer; and (2) Employment of the qualifying taxpayer during the period in which the materials or services purchased were used or applied. The taxpayer shall file the certificate with the taxpayer's tax return with the department. (d) If the tax credit under this section exceeds the taxpayer's net income tax liability, the excess of credit over liability may be used as a tax credit against the taxpayer's net income tax liability in subsequent years until exhausted. (e) All claims for a 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 tax credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the tax credit. (f) No other tax credit or deduction shall be claimed under this chapter for the certain expenses used to claim a tax credit under this section for the taxable year. (g) The director of taxation: (1) Shall prepare any forms necessary to claim a tax credit under this section; (2) May require the 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, pursuant to chapter 91, to effectuate the purposes of this section. (h) As used in this section: "Personal protective equipment" includes gloves, medical masks, N95 respirators, eye protection, gowns and aprons, boots or closed-toe work shoes, cleaning detergents, hand sanitizers, and cleaning products and tools. "Qualifying expenses" means expenses paid or incurred by a qualifying taxpayer in connection with: (1) Books; (2) Supplies, other than athletic supplies for courses of instruction in health or physical education; (3) Computer equipment, including related software and services; (4) Supplementary materials used in the classroom; (5) Professional-development courses related to the curriculum in which the taxpayer provides instruction; and (6) Supplies, including personal protective equipment, purchased from March 21, 2020, through June 30, 2021, for the purpose of reducing the risk of coronavirus disease 2019 transmission on the premises of the school or schools at which the qualifying taxpayer is employed. "Qualifying taxpayer" means, with respect to any taxable year, an individual who is employed as a pre-kindergarten through twelfth-grade teacher, instructor, school librarian, counselor, principal, registrar, or aide in a school for at least nine hundred hours during a school year. "Qualifying taxpayer" includes a classroom teacher and special education teacher." SECTION 2. New statutory material is underscored. SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2021. INTRODUCED BY: _____________________________ |
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