| 47 | | - | SECTION 1. The legislature finds the State of Hawaii is experiencing a growing mental health and housing crisis. In the aftermath of the August 8, 2023, wildfires on Maui, these concerns are increasingly more prevalent. This is because an estimated two thousand two hundred homes, apartments, and structures were destroyed, displacing thousands and leading to what has been termed a dire mental health crisis. The legislature additionally finds that the State's mental health concerns may be addressed through housing that encourages human-animal companionship. To this end, human-animal companionship has been linked to a reduction of feelings of stress, anxiety, depression, and loneliness. In addition to this, human-animal companionship has also been known to improve cardiovascular and heart health as well as immune system functioning. These combined benefits have led pet owners to go to the doctor an estimated fifteen per cent less than non-pet owners. Beyond these mental health benefits, the legislature finds that many people have historically chosen to live in a shelter or low-income housing as these are often the only affordable options that will allow them to remain with their pet. Additionally, with as many as twenty-five per cent of homeless persons owning pets, Hawaii's lack of pet-friendly housing continues to be an obstacle for the reduction of the State's homeless population. Support for housing that encourages human-animal companionship would further benefit the State as it would reduce costs incurred by providing financial support to take care of pets that are surrendered and abandoned due to a lack of pet friendly housing. The purpose of this Act is to establish a non-refundable income tax credit for residential landlords for each unit they rent to a tenant with a pet. SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows: "§235‑ Tenant pet income tax credit. (a) There shall be allowed to each taxpayer subject to the tax imposed under this chapter, a tenant pet income tax credit 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) In the case of a partnership, S corporation, estate, or trust, the tax credit shall be determined at the entity level. Distribution and share of credit shall be determined by rule. (c) The tenant pet income tax credit shall be equal to $ for any unit rented by a qualified taxpayer to a tenant that has a pet occupy the rental unit; provided that the rental lease agreement is for a minimum of six months; provided further that only one qualified taxpayer may claim the credit per unit rented. (d) The director of taxation: (1) Shall prepare any forms that may be 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 under chapter 91 necessary to effectuate the purposes of this section. (e) If the tax credit claimed by the taxpayer under this section exceeds the taxpayer's income tax liability, the excess of the credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted. All claims for the 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 credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit. (f) As used in this section, "pet" means a "pet animal" as that term is defined in section 711-1100." SECTION 3. New statutory material is underscored. SECTION 4. This Act shall take effect on July 1, 2040; provided that this Act shall apply to taxable years beginning after December 31, 2024. |
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| 47 | + | SECTION 1. The legislature finds the State of Hawaii is experiencing a growing mental health and housing crisis. In the aftermath of the August 8, 2023, wildfires on Maui, these concerns are increasingly more prevalent. This is because an estimated two thousand two hundred homes, apartments, and structures were destroyed, displacing thousands and leading to what has been termed a dire mental health crisis. The legislature additionally finds that the State's mental health and housing concerns may be addressed through support dedicated to human-animal companionship. To this end, human-animal companionship has been linked to a reduction of feelings of stress, anxiety, depression, and loneliness. In addition to this, human-animal companionship has also been known to improve cardiovascular and heart health as well as immune system functioning. These combined benefits have led pet owners to go to the doctor an estimated fifteen per cent less than non-pet owners. Beyond these mental health benefits, the legislature finds that many people have historically chosen to live in a shelter or low-income housing as these are often the only affordable options that will allow them to remain with their pet. Additionally, with as many as twenty-five per cent of homeless persons owning pets, Hawaii's lack of pet-friendly housing continues to be an obstacle for the reduction of the State's homeless population. Support for housing that encourages human-animal companionship would further benefit the State as it would reduce costs occurred due to the financial support that is dedicated to the care of pets that are surrendered and abandoned due to a lack of pet friendly housing. The purpose of this Act is to establish a non-refundable income tax credit for residential landlords for each unit they rent to a tenant with a pet. SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows: "§235‑ Tenant pet tax credit. (a) There shall be allowed to each taxpayer subject to the tax imposed under this chapter, a tenant pet income tax credit 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) In the case of a partnership, S corporation, estate, or trust, the tax credit allowable is for qualified expenses incurred by the entity for the taxable year. The expenses upon which the tax credit is computed shall be determined at the entity level. Distribution and share of credit shall be determined by rule. (c) The tenant pet tax credit shall be equal to $ for any unit rented by a qualified taxpayer to a tenant that has a pet occupy the rental unit; provided that the rental lease agreement is for a minimum of six months. (d) The director of taxation: (1) Shall prepare any forms that may be 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 under chapter 91 necessary to effectuate the purposes of this section. (e) If the tax credit claimed by the taxpayer under this section exceeds the taxpayer's income tax liability, the excess of the credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted. All claims for the 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 credit may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit. (f) As used in this section: "Pet" means a "pet animal" as that term is defined in section 711-1100. "Qualified taxpayer" means all landlords who lease any unit for at least six months during the taxable year to a tenant." SECTION 3. New statutory material is underscored. SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2023. INTRODUCED BY: _____________________________ |
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