Bill Text: HI HB732 | 2019 | Regular Session | Introduced

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Bill Title: Relating To Taxation.

Spectrum: Partisan Bill (Democrat 14-0)

Status: (Introduced - Dead) 2019-02-08 - The committee(s) on PVM recommend(s) that the measure be deferred. [HB732 Detail]

Download: Hawaii-2019-HB732-Introduced.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	732
THIRTIETH LEGISLATURE, 2019
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO TAXATION.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that due to an increase in the frequency and intensity of natural disasters, it is important for Hawaii residents to obtain adequate emergency supplies to sustain themselves during a disaster.  The legislature also recognizes that the cost of obtaining emergency supplies may be a financial burden to Hawaii residents, who already face a high cost of living.  Accordingly, the legislature believes that it is imperative to offer incentives for residents to take disaster preparedness action and to help families that may not be able to afford a disaster preparedness kit to acquire one.

     The purpose of this Act is to establish a disaster preparedness supplies income tax credit that shall be deductible from each qualifying taxpayer's net income tax liability.

     SECTION 2.  Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

     "§235-     Disaster preparedness supplies income tax credit.  (a)  There shall be allowed to each taxpayer subject to the tax imposed under this chapter, a disaster preparedness supplies 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.  Each taxpayer may claim the income tax credit only once before January 1, 2026.

     (b)  The disaster preparedness supplies income tax credit shall be equal to       per cent of the qualified expenses of the taxpayer, up to a maximum of $500.

     (c)  The director of taxation:

     (1)  Shall prepare any forms 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 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.

     (e)  As used in this section:

     "Disaster" means any emergency, or imminent threat thereof, which results or may likely result in substantial injury, harm, or loss of life among the general population or substantial damage to or loss of property of the general population, including fire, flood, tsunami, volcanic eruption, earthquake, high wind, or other natural causes or by enemy attack, sabotage, or other hostile action.

     "Prepackaged disaster preparedness kit" means a comprehensive supply of nonperishable food, water, or other necessary supplies intended for use in the event of a disaster, manufactured and sold as a kit.

     "Qualified expenses" means costs that are directly incurred by the taxpayer to purchase one or more prepackaged disaster preparedness kits for the taxpayer and, if applicable, the taxpayer's household; provided that the aggregate contents of the kit or kits do not exceed the amount of supplies necessary to provide the taxpayer and the taxpayer's household a      -day supply of those contents."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2018.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Income Tax Credit; Disaster Preparedness Supplies

 

Description:

Establishes an income tax credit for the purchase of household disaster preparedness supplies.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.