Hawaii 2023 Regular Session

Hawaii Senate Bill SB1209 Compare Versions

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

Old	New	Differences
1	1	THE SENATE S.B. NO. 1209 THIRTY-SECOND LEGISLATURE, 2023 STATE OF HAWAII A BILL FOR AN ACT relating to taxation. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
2	2
3	3	THE SENATE S.B. NO. 1209
4	4	THIRTY-SECOND LEGISLATURE, 2023
5	5	STATE OF HAWAII
6	6
7	7	THE SENATE
8	8
9	9	S.B. NO.
10	10
11	11	1209
12	12
13	13	THIRTY-SECOND LEGISLATURE, 2023
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 taxation.
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. Section 235-55.6, Hawaii Revised Statutes, is amended as follows: 1. By amending subsection (a) to read: "(a) Allowance of credit. (1) In general. For each resident taxpayer, who files an individual income tax return for a taxable year, and who is not claimed or is not otherwise eligible to be claimed as a dependent by another taxpayer for federal or Hawaii state individual income tax purposes, who maintains a household [which] that includes as a member one or more qualifying individuals (as defined in subsection (b)(1)), there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the applicable percentage of the employment-related expenses (as defined in subsection (b)(2)) paid by the individual during the taxable year. If the tax credit claimed by a resident taxpayer exceeds the amount of income tax payment due from the resident taxpayer, the excess of the credit over payments due shall be refunded to the resident taxpayer; provided that tax credit properly claimed by a resident individual who has no income tax liability shall be paid to the resident individual; [and] 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. (2) Applicable percentage. For purposes of paragraph (1), the taxpayer's applicable percentage shall be determined as follows: Adjusted gross income Applicable percentage [Not over $25,000 25% Over $25,000 but 24% not over $30,000 Over $30,000 but 23% not over $35,000 Over $35,000 but 22% not over $40,000 Over $40,000 but 21% not over $45,000 Over $45,000 but 20% not over $50,000 Over $50,000 15%.] Not over $15,000 35% Over $15,000 but 34% not over $17,000 Over $17,000 but 33% not over $19,000 Over $19,000 but 32% not over $21,000 Over $21,000 but 31% not over $23,000 Over $23,000 but 30% not over $25,000 Over $25,000 but 29% not over $27,000 Over $27,000 but 28% not over $29,000 Over $29,000 but 27% not over $31,000 Over $31,000 but 26% not over $33,000 Over $33,000 but 25% not over $35,000 Over $35,000 but 24% not over $37,000 Over $37,000 but 23% not over $39,000 Over $39,000 but 22% not over $41,000 Over $41,000 but 21% not over $43,000 Over $43,000 20%." 2. By amending subsection (c) to read: "(c) Dollar limit on amount creditable. The amount of the employment-related expenses incurred during any taxable year, which may be taken into account under subsection (a) shall not exceed: (1) [$2,400] $3,000 if there is one qualifying individual with respect to the taxpayer for such taxable year, or (2) [$4,800] $6,000 if there are two or more qualifying individuals with respect to the taxpayer for such taxable year. The amount determined under paragraph (1) or (2) (whichever is applicable) shall be reduced by the aggregate amount excludable from gross income under section 129 (with respect to dependent care assistance programs) of the Internal Revenue Code for the taxable year." SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2022. INTRODUCED BY: _____________________________
48	48
49	49	SECTION 1. Section 235-55.6, Hawaii Revised Statutes, is amended as follows:
50	50
51	51	1. By amending subsection (a) to read:
52	52
53	53	"(a) Allowance of credit.
54	54
55	55	(1) In general. For each resident taxpayer, who files an individual income tax return for a taxable year, and who is not claimed or is not otherwise eligible to be claimed as a dependent by another taxpayer for federal or Hawaii state individual income tax purposes, who maintains a household [which] that includes as a member one or more qualifying individuals (as defined in subsection (b)(1)), there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the applicable percentage of the employment-related expenses (as defined in subsection (b)(2)) paid by the individual during the taxable year. If the tax credit claimed by a resident taxpayer exceeds the amount of income tax payment due from the resident taxpayer, the excess of the credit over payments due shall be refunded to the resident taxpayer; provided that tax credit properly claimed by a resident individual who has no income tax liability shall be paid to the resident individual; [and] 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.
56	56
57	57	(2) Applicable percentage. For purposes of paragraph (1), the taxpayer's applicable percentage shall be determined as follows:
58	58
59	59	Adjusted gross income Applicable percentage
60	60
61	61	[Not over $25,000 25%
62	62
63	63	Over $25,000 but 24%
64	64
65	65	not over $30,000
66	66
67	67	Over $30,000 but 23%
68	68
69	69	not over $35,000
70	70
71	71	Over $35,000 but 22%
72	72
73	73	not over $40,000
74	74
75	75	Over $40,000 but 21%
76	76
77	77	not over $45,000
78	78
79	79	Over $45,000 but 20%
80	80
81	81	not over $50,000
82	82
83	83	Over $50,000 15%.]
84	84
85	85	Not over $15,000 35%
86	86
87	87	Over $15,000 but 34%
88	88
89	89	not over $17,000
90	90
91	91	Over $17,000 but 33%
92	92
93	93	not over $19,000
94	94
95	95	Over $19,000 but 32%
96	96
97	97	not over $21,000
98	98
99	99	Over $21,000 but 31%
100	100
101	101	not over $23,000
102	102
103	103	Over $23,000 but 30%
104	104
105	105	not over $25,000
106	106
107	107	Over $25,000 but 29%
108	108
109	109	not over $27,000
110	110
111	111	Over $27,000 but 28%
112	112
113	113	not over $29,000
114	114
115	115	Over $29,000 but 27%
116	116
117	117	not over $31,000
118	118
119	119	Over $31,000 but 26%
120	120
121	121	not over $33,000
122	122
123	123	Over $33,000 but 25%
124	124
125	125	not over $35,000
126	126
127	127	Over $35,000 but 24%
128	128
129	129	not over $37,000
130	130
131	131	Over $37,000 but 23%
132	132
133	133	not over $39,000
134	134
135	135	Over $39,000 but 22%
136	136
137	137	not over $41,000
138	138
139	139	Over $41,000 but 21%
140	140
141	141	not over $43,000
142	142
143	143	Over $43,000 20%."
144	144
145	145	2. By amending subsection (c) to read:
146	146
147	147	"(c) Dollar limit on amount creditable. The amount of the employment-related expenses incurred during any taxable year, which may be taken into account under subsection (a) shall not exceed:
148	148
149	149	(1) [$2,400] $3,000 if there is one qualifying individual with respect to the taxpayer for such taxable year, or
150	150
151	151	(2) [$4,800] $6,000 if there are two or more qualifying individuals with respect to the taxpayer for such taxable year.
152	152
153	153	The amount determined under paragraph (1) or (2) (whichever is applicable) shall be reduced by the aggregate amount excludable from gross income under section 129 (with respect to dependent care assistance programs) of the Internal Revenue Code for the taxable year."
154	154
155	155	SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
156	156
157	157	SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2022.
158	158
159	159
160	160
161	161	INTRODUCED BY: _____________________________
162	162
163	163	INTRODUCED BY:
164	164
165	165	_____________________________
166	166
167	167
168	168
169	169
170	170
171	171
172	172
173	173
174	174
175	175
176	176
177	177
178	178
179	179
180	180
181	181
182	182
183	183
184	184
185	185
186	186
187	187
188	188
189	189
190	190
191	191
192	192
193	193
194	194
195	195	Report Title: Income Tax; Household and Dependent Care; Expenses; Credit Description: Conforms the amount allowable for the Hawaii expenses for household and dependent care services necessary for the gainful employment tax credit to the credit amounts allowed in the federal tax code. Applies to taxable years beginning after 12/31/22. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
196	196
197	197
198	198
199	199
200	200
201	201	Report Title:
202	202
203	203	Income Tax; Household and Dependent Care; Expenses; Credit
204	204
205	205
206	206
207	207	Description:
208	208
209	209	Conforms the amount allowable for the Hawaii expenses for household and dependent care services necessary for the gainful employment tax credit to the credit amounts allowed in the federal tax code. Applies to taxable years beginning after 12/31/22.
210	210
211	211
212	212
213	213
214	214
215	215
216	216
217	217	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.