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:
THE SENATE S.B. NO. 1209
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII
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:
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: _____________________________
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: _____________________________
INTRODUCED BY:
_____________________________
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.
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.