| 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- Income tax credit; medical care; travel expenses. (a) Each resident taxpayer who is not eligible to be claimed by another as a dependent for federal or state income taxes; who paid for certain travel expenses, not covered or compensated by insurance or otherwise, for the purpose of obtaining medical care for the resident taxpayer's own person, or for obtaining medical care for a dependent of the resident taxpayer; and who files an individual net income tax return for a taxable year, may claim a tax credit under this section against the resident taxpayer's Hawaii state individual net income tax, subject to the requirements of this section. (b) Each resident taxpayer having an adjusted gross income of less than $ who paid for travel expenses, not covered or compensated by insurance or otherwise, for the purpose of obtaining medical care for the resident taxpayer's own person, or for obtaining medical care for a dependent of the resident taxpayer, during the taxable year for which the credit is claimed, may claim a tax credit in an amount equal to per cent of the travel expenses paid that were primarily for, and essential to, medical care. (c) The tax credits shall be deductible from the resident taxpayer's individual net income tax for the tax year in which the credits are properly claimed; provided that spouses filing separate returns for a taxable year for which a joint return could have been made by the spouses shall claim only the tax credits to which they would have been entitled had a joint return been filed. If the allowed tax credits exceed the amount of the income tax payments due from the taxpayer, the excess of credits over payments due shall be refunded to the resident taxpayer; provided that no refunds or payments on account of the tax credits allowed by this section shall be made for amounts less than $1. (d) All the provisions relating to assessments and refunds under this chapter and section 231-23(c)(1) shall apply to the tax credits hereunder. (e) Claims for tax credits under this section, including any 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) No other tax credit or deduction shall be claimed under this chapter for travel expenses incurred for medical care for the taxable year. (g) The director of taxation shall prepare any forms that may be necessary to claim a credit under this section, require a resident taxpayer to provide proof of a claim for the tax credit, and adopt rules pursuant to chapter 91 necessary for the purposes of this section. (h) For the purposes of this section: "Dependent" has the same meaning as in section 152 of the Internal Revenue Code, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof. "Medical care" has the same meaning as in sections 213(d)(1)(A) and 213(d)(9) of the Internal Revenue Code." SECTION 2. New statutory material is underscored. SECTION 3. This Act shall take effect on December 31, 2050, and shall apply to taxable years beginning after December 31, 2023. |
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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- Income tax credit; medical travel expenses. (a) Each resident taxpayer who is not eligible to be claimed by another as a dependent for federal or state income taxes; who paid for certain travel expenses, not covered by insurance, for the purpose of obtaining medical care for the taxpayer's own person, or for obtaining medical care for a dependent of the resident taxpayer; and who files an individual net income tax return for a taxable year, may claim a tax credit under this section against the resident taxpayer's Hawaii state individual net income tax, subject to the requirements of this section. (b) Each taxpayer having an adjusted gross income of less than $ who paid for travel expenses, not covered or compensated by insurance or otherwise, for the purpose of obtaining medical care for the taxpayer's own person, or for obtaining medical care for a dependent of the resident taxpayer, during the taxable year for which the credit is claimed, may claim a tax credit in an amount equal to per cent of the travel expenses paid that were primarily for, and essential to, medical care. (c) The tax credits shall be deductible from the taxpayer's individual net income tax for the tax year in which the credits are properly claimed; provided that spouses filing separate returns for a taxable year for which a joint return could have been made by the spouses shall claim only the tax credits to which they would have been entitled had a joint return been filed. If the allowed tax credits exceed the amount of the income tax payments due from the taxpayer, the excess of credits over payments due shall be refunded to the taxpayer; provided further that no refunds or payments on account of the tax credits allowed by this section shall be made for amounts less than $1. (d) All of the provisions relating to assessments and refunds under this chapter and under section 231-23(c)(1) shall apply to the tax credits hereunder. (e) Claims for tax credits under this section, including any amended claims thereof, shall be filed on or before the end of the twelfth month following the taxable year for which the credit may be claimed. (f) The director of taxation shall prepare and prescribe the appropriate forms to be used herein, require proof of claims for tax credits, and adopt rules pursuant to chapter 91 necessary for the purposes of this section. (g) For the purposes of this section: "Dependent" has the same meaning as in section 152 of the Internal Revenue Code, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof. "Medical care" has the same meaning as in sections 213(d)(1)(A) and 213(d)(9) of the Internal Revenue Code." SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date. SECTION 3. New statutory material is underscored. SECTION 4. This Act shall take effect on December 31, 2050, and shall apply to taxable years beginning after December 31, 2023. |
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