Hawaii 2025 Regular Session

Hawaii House Bill HB577 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	HOUSE OF REPRESENTATIVES H.B. NO. 577 THIRTY-THIRD LEGISLATURE, 2025 H.D. 2 STATE OF HAWAII A BILL FOR AN ACT RELATING TO TAXATION. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
	1	+	HOUSE OF REPRESENTATIVES H.B. NO. 577 THIRTY-THIRD LEGISLATURE, 2025 H.D. 1 STATE OF HAWAII A BILL FOR AN ACT RELATING TO TAXATION. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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3	3		HOUSE OF REPRESENTATIVES H.B. NO. 577
4		-	THIRTY-THIRD LEGISLATURE, 2025 H.D. 2
	4	+	THIRTY-THIRD LEGISLATURE, 2025 H.D. 1
5	5		STATE OF HAWAII
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7	7		HOUSE OF REPRESENTATIVES
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9	9		H.B. NO.
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11	11		577
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13	13		THIRTY-THIRD LEGISLATURE, 2025
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15		-	H.D. 2
	15	+	H.D. 1
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17	17		STATE OF HAWAII
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31	31		A BILL FOR AN ACT
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37	37		RELATING TO TAXATION.
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43	43		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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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- Public transportation subsidization tax credit. (a) There shall be allowed to each individual or corporate taxpayer who is not claimed, or is not otherwise eligible to be claimed, as a dependent by another taxpayer for federal or state income tax purposes, a public transportation subsidization tax credit that shall be deductible from the taxpayer's net income tax liability imposed by this chapter for the taxable year in which the tax credit is properly claimed. (b) To qualify for the tax credit, the taxpayer shall be an employer having a place of business in any county in the State. (c) The amount of the tax credit shall be equal to ~~per cent of~~ the amount spent by the taxpayer during the taxable year to purchase fares or passes for the employer's employees to use public transportation. (d) If the tax credit 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; provided that no credit carried forward under this subsection shall be used as a credit for a taxable year beginning after December 31, 2030. 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 tax credit may be claimed. Failure to meet the filing requirements of this subsection shall constitute a waiver of the right to claim the tax credit. (e) No other tax credit or deduction shall be claimed under this chapter for the expenses used to claim a tax credit under this section for the taxable year. (f) 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. (g) The tax credit authorized under this section shall not be available for taxable years beginning after December 31, 2029. (h) The director of taxation shall submit to the legislature reports regarding the tax credit authorized under this section. Each report shall be submitted ~~no later than~~ twenty days prior to the convening of the regular sessions of 2027, 2028, 2029, and 2030. Each report shall include, at minimum: (1) The number and value of the credits granted under this section for the prior calendar year; and (2) The total number and value of the credits granted under this section since its enactment. (i) For the purposes of this section, "public transportation" means any mass transportation program that is: (1) Open to the general public; and (2) Operated or contracted by the State or a county." SECTION 2. New statutory material is underscored. SECTION 3. This Act shall take effect on July 1, 3000; provided that it shall apply to taxable years beginning after December 31, 2025.
	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- Public transportation subsidization tax credit. (a) There shall be allowed to each individual or corporate taxpayer who is not claimed, or is not otherwise eligible to be claimed, as a dependent by another taxpayer for federal or state income tax purposes, a public transportation subsidization tax credit that shall be deductible from the taxpayer's net income tax liability imposed by this chapter for the taxable year in which the tax credit is properly claimed. (b) To qualify for the tax credit, the taxpayer shall be an employer having a place of business in any county in the State. (c) The amount of the tax credit shall be equal to the amount spent by the taxpayer during the taxable year to purchase fares or passes for the employer's employees to use public transportation. (d) If the tax credit 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; provided that no credit carried forward under this subsection shall be used as a credit for a taxable year beginning after December 31, 2030. 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 tax credit may be claimed. Failure to meet the filing requirements of this subsection shall constitute a waiver of the right to claim the tax credit. (e) No other tax credit or deduction shall be claimed under this chapter for the expenses used to claim a tax credit under this section for the taxable year. (f) 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. (g) The tax credit authorized under this section shall not be available for taxable years beginning after December 31, 2029. (h) The director of taxation shall submit to the legislature reports regarding the tax credit authorized under this section. Each report shall be submitted twenty days prior to the convening of the regular sessions of 2027, 2028, 2029, and 2030. Each report shall include, at minimum: (1) The number and value of the credits granted under this section for the prior calendar year; and (2) The total number and value of the credits granted under this section since its enactment. (i) For the purposes of this section, "public transportation" means any mass transportation program that is: (1) Open to the general public; and (2) Operated or contracted by the State or a county." SECTION 2. New statutory material is underscored. SECTION 3. This Act shall take effect on July 1, 3000; provided that it shall apply to taxable years beginning after December 31, 2025.
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49	49		SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
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51	51		"§235- Public transportation subsidization tax credit. (a) There shall be allowed to each individual or corporate taxpayer who is not claimed, or is not otherwise eligible to be claimed, as a dependent by another taxpayer for federal or state income tax purposes, a public transportation subsidization tax credit that shall be deductible from the taxpayer's net income tax liability imposed by this chapter for the taxable year in which the tax credit is properly claimed.
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53	53		(b) To qualify for the tax credit, the taxpayer shall be an employer having a place of business in any county in the State.
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55		-	(c) The amount of the tax credit shall be equal to ~~per cent of~~ the amount spent by the taxpayer during the taxable year to purchase fares or passes for the employer's employees to use public transportation.
	55	+	(c) The amount of the tax credit shall be equal to the amount spent by the taxpayer during the taxable year to purchase fares or passes for the employer's employees to use public transportation.
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57	57		(d) If the tax credit 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; provided that no credit carried forward under this subsection shall be used as a credit for a taxable year beginning after December 31, 2030.
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59	59		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 tax credit may be claimed. Failure to meet the filing requirements of this subsection shall constitute a waiver of the right to claim the tax credit.
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61	61		(e) No other tax credit or deduction shall be claimed under this chapter for the expenses used to claim a tax credit under this section for the taxable year.
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63	63		(f) The director of taxation:
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65	65		(1) Shall prepare any forms that may be necessary to claim a tax credit under this section;
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67	67		(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
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69	69		(3) May adopt rules under chapter 91 necessary to effectuate the purposes of this section.
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71	71		(g) The tax credit authorized under this section shall not be available for taxable years beginning after December 31, 2029.
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73		-	(h) The director of taxation shall submit to the legislature reports regarding the tax credit authorized under this section. Each report shall be submitted ~~no later than~~ twenty days prior to the convening of the regular sessions of 2027, 2028, 2029, and 2030. Each report shall include, at minimum:
	73	+	(h) The director of taxation shall submit to the legislature reports regarding the tax credit authorized under this section. Each report shall be submitted twenty days prior to the convening of the regular sessions of 2027, 2028, 2029, and 2030. Each report shall include, at minimum:
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75	75		(1) The number and value of the credits granted under this section for the prior calendar year; and
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77	77		(2) The total number and value of the credits granted under this section since its enactment.
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79	79		(i) For the purposes of this section, "public transportation" means any mass transportation program that is:
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81	81		(1) Open to the general public; and
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83	83		(2) Operated or contracted by the State or a county."
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85	85		SECTION 2. New statutory material is underscored.
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87	87		SECTION 3. This Act shall take effect on July 1, 3000; provided that it shall apply to taxable years beginning after December 31, 2025.
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89		-	Report Title: Tax Credit; Businesses; Employees; Public Transportation; Legislature; Reports Description: Authorizes a tax credit for businesses that pay the public transportation costs of employees. Requires reports to the Legislature. Applies for taxable years beginning after 12/31/2025 but not beginning after 12/31/2029. Effective 7/1/3000. (~~HD2~~) The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
	89	+	Report Title: Tax Credit; Businesses; Employees; Public Transportation; Legislature; Reports Description: Authorizes a tax credit for businesses that pay the public transportation costs of employees. Requires reports to the Legislature. Applies for taxable years beginning after 12/31/2025 but not beginning after 12/31/2029. Effective 7/1/3000. (HD1) The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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95	95		Report Title:
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97	97		Tax Credit; Businesses; Employees; Public Transportation; Legislature; Reports
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101	101		Description:
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103		-	Authorizes a tax credit for businesses that pay the public transportation costs of employees. Requires reports to the Legislature. Applies for taxable years beginning after 12/31/2025 but not beginning after 12/31/2029. Effective 7/1/3000. (~~HD2~~)
	103	+	Authorizes a tax credit for businesses that pay the public transportation costs of employees. Requires reports to the Legislature. Applies for taxable years beginning after 12/31/2025 but not beginning after 12/31/2029. Effective 7/1/3000. (HD1)
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111	111		The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.