HOUSE OF REPRESENTATIVES H.B. NO. 1251 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII A BILL FOR AN ACT relating to taxation. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
HOUSE OF REPRESENTATIVES H.B. NO. 1251
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
HOUSE OF REPRESENTATIVES
H.B. NO.
1251
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
relating to taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows: "§235- Refundable insurance premium tax credit. (a) There shall be allowed to each qualified taxpayer subject to the tax imposed by this chapter, a credit to offset the cost of real property insurance premiums on qualified properties, which shall be deductible from the net income tax liability of the qualified taxpayer, if any, imposed by this chapter for the taxable year in which the credit is properly claimed. (b) The amount of the tax credit shall be equal to per cent of the taxpayer's yearly real property insurance premium for a qualified property. (c) 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. (d) If the tax credit claimed by the taxpayer under this section exceeds the amount of the income tax payments due from the taxpayer, the excess of credit over payments due shall be refunded to the taxpayer; provided that the tax credit properly claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer; and provided further that no refunds or payments on account of the tax credit allowed by this section shall be made for amounts less than $1. 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. (e) For the purposes of this section: "Owner-occupant" means any individual in whose name sole or joint legal title is held in real property that, simultaneous to the ownership, serves as the individual's principal residence, as defined by the department, for a period of not less than three hundred sixty-five consecutive days; provided that the individual shall retain complete possessory control of the premises of the real property during this period. An individual shall not be deemed to have complete possessory control of the premises if the individual rents, leases, or assigns the premises for any period of time to any other person in whose name legal title is not held; except that an individual shall be deemed to have complete possessory control even when the individual conveys or transfers the real property into a trust for estate planning purposes and continues in the use of the premises as the individual's principal residence during this period. "Qualified property" means a the unit of a condominium, as defined in section 514B-3, of which the qualified taxpayer is an owner-occupant. "Qualified taxpayer" means a taxpayer liable for payment of the real property insurance premium of a qualified property." SECTION 2. New statutory material is underscored. SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2024. INTRODUCED BY: _____________________________
SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235- Refundable insurance premium tax credit. (a) There shall be allowed to each qualified taxpayer subject to the tax imposed by this chapter, a credit to offset the cost of real property insurance premiums on qualified properties, which shall be deductible from the net income tax liability of the qualified taxpayer, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.
(b) The amount of the tax credit shall be equal to per cent of the taxpayer's yearly real property insurance premium for a qualified property.
(c) 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.
(d) If the tax credit claimed by the taxpayer under this section exceeds the amount of the income tax payments due from the taxpayer, the excess of credit over payments due shall be refunded to the taxpayer; provided that the tax credit properly claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer; and provided further that no refunds or payments on account of the tax credit allowed by this section shall be made for amounts less than $1. 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.
(e) For the purposes of this section:
"Owner-occupant" means any individual in whose name sole or joint legal title is held in real property that, simultaneous to the ownership, serves as the individual's principal residence, as defined by the department, for a period of not less than three hundred sixty-five consecutive days; provided that the individual shall retain complete possessory control of the premises of the real property during this period. An individual shall not be deemed to have complete possessory control of the premises if the individual rents, leases, or assigns the premises for any period of time to any other person in whose name legal title is not held; except that an individual shall be deemed to have complete possessory control even when the individual conveys or transfers the real property into a trust for estate planning purposes and continues in the use of the premises as the individual's principal residence during this period.
"Qualified property" means a the unit of a condominium, as defined in section 514B-3, of which the qualified taxpayer is an owner-occupant.
"Qualified taxpayer" means a taxpayer liable for payment of the real property insurance premium of a qualified property."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2024.
INTRODUCED BY: _____________________________
INTRODUCED BY:
_____________________________
Report Title: Income Tax; Condominiums; Real Property Insurance Premiums; Tax Credit Description: Establishes a refundable income tax credit to offset the increase in real property insurance premiums for certain properties. 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; Condominiums; Real Property Insurance Premiums; Tax Credit
Description:
Establishes a refundable income tax credit to offset the increase in real property insurance premiums for certain properties.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.