If enacted, HB399 will modify Chapter 235 of the Hawaii Revised Statutes to introduce a nonrefundable tax credit based on the salaries of interns that employers hire. This credit can apply to up to 5,250 qualified interns per calendar year, incentivizing businesses to create intern positions that offer practical experience in various fields. By encouraging a greater number of internships, the bill aims to foster partnerships between educational institutions and employers, potentially leading to a stronger workforce in Hawaii.
Summary
House Bill 399 proposes the establishment of an income tax credit for employers who provide work-based learning opportunities for qualified interns in Hawaii. This initiative is aimed at enhancing the employability of local students by offering them valuable hands-on experience before they graduate from high school. The bill acknowledges the challenges that small to medium-sized employers face when considering the provision of such internships, suggesting that financial incentives could play a crucial role in increasing their participation in these programs.
Contention
There may be various points of contention surrounding HB399, such as the limitations on the number of interns per employer and the income level required to qualify for the tax credit. Critics may argue that restricting the credit to only those internships approved by educational institutions could create bureaucratic hurdles that discourage employers from participating. Additionally, there might be concerns regarding how the criteria for what constitutes a 'qualified intern' are defined and enforced, particularly in terms of ensuring fair wages and meaningful job experiences.
A resolution to direct the Clerk of the House of Representatives to only present to the Governor enrolled House bills finally passed by both houses of the One Hundred Third Legislature.