Bill Text: HI SB1347 | 2024 | Regular Session | Introduced

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Bill Title: Relating To Income Tax.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-12-11 - Carried over to 2024 Regular Session. [SB1347 Detail]

Download: Hawaii-2024-SB1347-Introduced.html

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THE SENATE	S.B. NO.	1347
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO INCOME TAX.

 

 

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-     Tax credit for teacher expenses.  (a)  There shall be allowed to each qualifying taxpayer subject to the tax imposed by this chapter, a tax credit for qualifying expenses 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)  The amount of the tax credit shall be equal to eighty per cent of the amount expended for qualifying expenses in a taxable year; provided that the credit shall not exceed $500 per taxable year.

     (c)  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 the credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted.

     (d)  No other tax credit or deduction shall be claimed under this chapter for qualifying expenses for the taxable year.

     (e)  The director of taxation shall prepare such forms as may be necessary to claim a credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91.

     (f)  Claims for the tax credit under this section, including any amended claims, shall be filed on or before the end of the twelfth month following 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.

     (g)  As used in this section:

     "Qualifying expenses" means expenses paid or incurred by a qualifying taxpayer in connection with books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment (including related software and services) and other equipment, and supplementary materials used by the qualifying taxpayer in the classroom.

     "Qualifying taxpayer" means an individual employed by the department of education, a charter school, or a private school in the State as a kindergarten through twelfth‑grade teacher for at least nine hundred hours during the tax year."

     SECTION 2.  Section 235-2.4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Section 63 (with respect to taxable income defined) of the Internal Revenue Code shall be operative for the purposes of this chapter, subject to the following:

     (1)  Section 63(c)(1)(B) (relating to the additional standard deduction), 63(c)(1)(C) (relating to the real property tax deduction), 63(c)(1)(D) (relating to the disaster loss deduction), 63(c)(1)(E) (relating to the motor vehicle sales tax deduction), 63(c)(4) (relating to inflation adjustments), 63(c)(7) (defining the real property tax deduction), 63(c)(8) (defining the disaster loss deduction), 63(c)(9) (defining the motor vehicle sales tax deduction), and 63(f) (relating to additional amounts for the aged or blind) of the Internal Revenue Code shall not be operative for purposes of this chapter;

     (2)  Section 63(c)(2) (relating to the basic standard deduction) of the Internal Revenue Code shall be operative[, except that the standard deduction amounts provided therein shall instead mean:

          (A)  $4,400 in the case of:

              (i)  A joint return as provided by section 235-93; or

             (ii)  A surviving spouse (as defined in section 2(a) of the Internal Revenue Code);

          (B)  $3,212 in the case of a head of household (as defined in section 2(b) of the Internal Revenue Code);

          (C)  $2,200 in the case of an individual who is not married and who is not a surviving spouse or head of household; or

          (D)  $2,200 in the case of a married individual filing a separate return;]; provided that:

          (A)  The standard deduction amounts provided therein shall instead mean:

              (i)  $10,000 in the case of a joint return as provided by section 235-93 or a surviving spouse (as defined in section 2(a) of the Internal Revenue Code);

             (ii)  $7,500 in the case of a head of household (as defined in section 2(b) of the Internal Revenue Code);

            (iii)  $5,000 in the case of an individual who is not married and who is not a surviving spouse or head of household; or

             (iv)  $5,000 in the case of a married individual filing a separate return;

          (B)  For each taxable year beginning on or after January 1, 2024, the director shall, no later than December 15 of the preceding calendar year, recompute the standard deduction amounts by multiplying the dollar amounts for the previous tax year by the cost-of-living adjustment factor, if the cost-of-living adjustment factor is greater than zero, and rounding off the resulting product to the nearest $1.  If the cost-of-living adjustment factor is less than zero in a given year, then no adjustment will occur in the following year.  For purposes of this subparagraph, the cost-of-living adjustment factor is calculated by adding 1.0 to the percentage change in the Urban Hawaii Consumer Price Index for all items, as published by the United States Department of Labor, from July of the prior calendar year to July of the current calendar year.  If the Urban Hawaii Consumer Price Index is discontinued, the Chained Consumer Price Index for all urban areas for all items, as published by the United States Department of Labor, shall be used to calculate the cost-of-living adjustment;

     (3)  Section 63(c)(5) (limiting the basic standard deduction in the case of certain dependents) of the Internal Revenue Code shall be operative, except that the limitation shall be the greater of $500 or the individual's earned income; and

     (4)  The standard deduction amount for nonresidents shall be calculated pursuant to section 235-5."

     SECTION 3.  Section 235-51, Hawaii Revised Statutes, is amended to read as follows:

     "§235-51  Tax imposed on individuals; rates.  (a)  There is hereby imposed on the taxable income of every:

     (1)  Taxpayer who files a joint return under section 235-93; and

     (2)  Surviving spouse,

a tax determined in accordance with the following table:

     [In the case of any taxable year beginning after December 31, 2017:

          If the taxable income is:     The tax shall be:

          Not over $4,800              1.40% of taxable income

          Over $4,800 but              $67.00 plus 3.20% of

            not over $9,600              excess over $4,800

          Over $9,600 but              $221.00 plus 5.50% of

            not over $19,200              excess over $9,600

          Over $19,200 but             $749.00 plus 6.40% of

            not over $28,800              excess over $19,200

          Over $28,800 but             $1,363.00 plus 6.80% of

            not over $38,400             excess over $28,800

          Over $38,400 but             $2,016.00 plus 7.20% of

            not over $48,000             excess over $38,400

          Over $48,000 but             $2,707.00 plus 7.60% of

            not over $72,000             excess over $48,000

          Over $72,000 but             $4,531.00 plus 7.90% of

            not over $96,000             excess over $72,000

          Over $96,000 but             $6,427.00 plus 8.25% of

            not over $300,000             excess over $96,000

          Over $300,000 but             $23,257.00 plus 9.00% of

            not over $350,000             excess over $300,000

          Over $350,000 but             $27,757.00 plus 10.00% of

            not over $400,000             excess over $350,000

          Over $400,000                $32,757.00 plus 11.00% of

                                         excess over $400,000.]

     In the case of any taxable year beginning after December 31, 2022:

          If the taxable income is:     The tax shall be:

          Not over $5,126              1.40% of taxable income

          Over $5,126 but              $72.00 plus 3.20% of

            not over $10,253             excess over $5,126

          Over $10,253 but             $236.00 plus 5.50% of

            not over $20,506             excess over $10,253

          Over $20,506 but             $800.00 plus 6.40% of

            not over $30,758             excess over $20,506

          Over $30,758 but             $1,456.00 plus 6.80% of

            not over $41,011             excess over $30,758

          Over $41,011 but             $2,153.00 plus 7.20% of

            not over $51,264             excess over $41,011

          Over $51,264 but             $2,891.00 plus 7.60% of

            not over $76,896              excess over $51,264

          Over $76,896 but             $4,839.00 plus 7.90% of

            not over $102,528             excess over $76,896

          Over $102,528 but             $6,864.00 plus 8.25% of

            not over $320,400             excess over $102,528

          Over $320,400 but             $24,839.00 plus 9.00% of

            not over $373,800             excess over $320,400

          Over $373,800 but             $29,645.00 plus 10.00% of

            not over $427,200             excess over $373,800

          Over $427,200                $34,985.00 plus 11.00% of

                                         excess over $427,200.

     (b)  There is hereby imposed on the taxable income of every head of a household a tax determined in accordance with the following table:

     [In the case of any taxable year beginning after December 31, 2017:

          If the taxable income is:     The tax shall be:

          Not over $3,600              1.40% of taxable income

          Over $3,600 but              $50.00 plus 3.20% of

            not over $7,200              excess over $3,600

          Over $7,200 but              $166.00 plus 5.50% of

            not over $14,400                excess over $7,200

          Over $14,400 but             $562.00 plus 6.40% of

            not over $21,600             excess over $14,400

          Over $21,600 but             $1,022.00 plus 6.80% of

            not over $28,800             excess over $21,600

          Over $28,800 but             $1,512.00 plus 7.20% of

            not over $36,000             excess over $28,800

          Over $36,000 but             $2,030.00 plus 7.60% of

            not over $54,000             excess over $36,000

          Over $54,000 but             $3,398.00 plus 7.90% of

            not over $72,000             excess over $54,000

          Over $72,000 but             $4,820.00 plus 8.25% of

            not over $225,000             excess over $72,000

          Over $225,000 but             $17,443.00 plus 9.00% of

            not over $262,500             excess over $225,000

          Over $262,500 but             $20,818.00 plus 10.00% of

            not over $300,000             excess over $262,500

          Over $300,000                $24,568.00 plus 11.00% of

                                         excess over $300,000.]

     In the case of any taxable year beginning after December 31, 2022:

          If the taxable income is:     The tax shall be:

          Not over $3,845              1.40% of taxable income

          Over $3,845 but              $54.00 plus 3.20% of

            not over $7,690              excess over $3,845

          Over $7,690 but              $177.00 plus 5.50% of

            not over $15,379             excess over $7,690

          Over $15,379 but             $600.00 plus 6.40% of

            not over $23,069             excess over $15,379

          Over $23,069 but             $1,092.00 plus 6.80% of

            not over $30,758             excess over $23,069

          Over $30,758 but             $1,615.00 plus 7.20% of

            not over $38,448             excess over $30,758

          Over $38,448 but             $2,168.00 plus 7.60% of

            not over $57,672              excess over $38,448

          Over $57,672 but             $3,629.00 plus 7.90% of

            not over $76,896             excess over $57,672

          Over $76,896 but             $5,148.00 plus 8.25% of

            not over $240,300             excess over $76,896

          Over $240,300 but             $18,629.00 plus 9.00% of

            not over $280,350             excess over $240,300

          Over $280,350 but             $22,234.00 plus 10.00% of

            not over $320,400             excess over $280,350

          Over $320,400                $26,239.00 plus 11.00% of

                                         excess over $320,400.

     (c)  There is hereby imposed on the taxable income of (1) every unmarried individual (other than a surviving spouse, or the head of a household) and (2) on the taxable income of every married individual who does not make a single return jointly with the individual's spouse under section 235-93 a tax determined in accordance with the following table:

     [In the case of any taxable year beginning after December 31, 2017:

          If the taxable income is:     The tax shall be:

          Not over $2,400              1.40% of taxable income

          Over $2,400 but              $34.00 plus 3.20% of

            not over $4,800              excess over $2,400

          Over $4,800 but              $110.00 plus 5.50% of

            not over $9,600              excess over $4,800

          Over $9,600 but              $374.00 plus 6.40% of

            not over $14,400             excess over $9,600

          Over $14,400 but             $682.00 plus 6.80% of

            not over $19,200             excess over $14,400

          Over $19,200 but             $1,008.00 plus 7.20% of

            not over $24,000             excess over $19,200

          Over $24,000 but             $1,354.00 plus 7.60% of

            not over $36,000             excess over $24,000

          Over $36,000 but             $2,266.00 plus 7.90% of

            not over $48,000             excess over $36,000

          Over $48,000 but             $3,214.00 plus 8.25% of

            not over $150,000             excess over $48,000

          Over $150,000 but             $11,629.00 plus 9.00% of

            not over $175,000             excess over $150,000

          Over $175,000 but             $13,879.00 plus 10.00% of

            not over $200,000             excess over $175,000

          Over $200,000                $16,379.00 plus 11.00% of

                                         excess over $200,000.]

     In the case of any taxable year beginning after December 31, 2022:

          If the taxable income is:     The tax shall be:

          Not over $2,563              1.40% of taxable income

          Over $2,563 but              $36.00 plus 3.20% of

            not over $5,126              excess over $2,400

          Over $5,126 but              $118.00 plus 5.50% of

            not over $10,253             excess over $5,126

          Over $10,253 but             $400.00 plus 6.40% of

            not over $15,379             excess over $10,253

          Over $15,379 but             $728.00 plus 6.80% of

            not over $20,506             excess over $15,379

          Over $20,506 but             $1,077.00 plus 7.20% of

            not over $25,632             excess over $20,506

          Over $25,632 but             $1,446.00 plus 7.60% of

            not over $38,448              excess over $25,632

          Over $38,448 but             $2,420.00 plus 7.90% of

            not over $51,264             excess over $38,448

          Over $51,264 but             $3,432.00 plus 8.25% of

            not over $160,200             excess over $51,264

          Over $160,200 but             $12,419.00 plus 9.00% of

            not over $186,900             excess over $160,200

          Over $186,900 but             $14,822.00 plus 10.00% of

            not over $213,600             excess over $186,900

          Over $213,600                $17,492.00 plus 11.00% of

                                         excess over $213,600.

     (d)  The tax imposed by section 235-2.45 on estates and trusts shall be determined in accordance with the following table:

     In the case of any taxable year beginning after December 31, 2001:

          If the taxable income is:     The tax shall be:

          Not over $2,000              1.40% of taxable income

          Over $2,000 but              $28.00 plus 3.20% of

            not over $4,000              excess over $2,000

          Over $4,000 but              $92.00 plus 5.50% of

            not over $8,000              excess over $4,000

          Over $8,000 but              $312.00 plus 6.40% of

            not over $12,000             excess over $8,000

          Over $12,000 but             $568.00 plus 6.80% of

            not over $16,000             excess over $12,000

          Over $16,000 but             $840.00 plus 7.20% of

            not over $20,000             excess over $16,000

          Over $20,000 but             $1,128.00 plus 7.60% of

            not over $30,000             excess over $20,000

          Over $30,000 but             $1,888.00 plus 7.90% of

            not over $40,000             excess over $30,000

          Over $40,000                 $2,678.00 plus 8.25% of

                                         excess over $40,000.

     (e)  Any taxpayer, other than a corporation, acting as a business entity in more than one state who is required by this chapter to file a return may elect to report and pay a tax of .5 per cent of the taxpayer's annual gross sales if the:

     (1)  Taxpayer's only activities in this State consist of sales;

     (2)  Taxpayer does not own or rent real estate or tangible personal property; and

     (3)  Taxpayer's annual gross sales in or into this State during the tax year is not in excess of $100,000.

     (f)  If a taxpayer has a net capital gain for any taxable year to which this subsection applies, then the tax imposed by this section shall not exceed the sum of:

     (1)  The tax computed at the rates and in the same manner

as if this subsection had not been enacted on the greater of:

          (A)  The taxable income reduced by the amount of net capital gain, or

          (B)  The amount of taxable income taxed at a rate below 7.25 per cent, plus

     (2)  A tax of 7.25 per cent of the amount of taxable income in excess of the amount determined under paragraph (1).

     This subsection shall apply to individuals, estates, and trusts for taxable years beginning after December 31, 1986.

     (g)  For each taxable year beginning on or after January 1, 2024, the director shall, no later than December 15 of the preceding calendar year, recompute the taxable income amounts within each of the income brackets in subsections (a), (b), and (c) by multiplying the taxable income amounts within each income bracket for the previous tax year by the cost-of-living adjustment factor, if the cost-of-living adjustment factor is greater than zero, and rounding off the resulting product to the nearest $1.  If the cost-of-living adjustment factor is less than zero in a given year, then no adjustment will occur in the following year.  For purposes of this subsection, the cost-of-living adjustment factor is calculated by adding 1.0 to the percentage change in the Urban Hawaii Consumer Price Index for all items, as published by the United States Department of Labor, from July of the prior calendar year to July of the current calendar year.  If the Urban Hawaii Consumer Price Index is discontinued, the Chained Consumer Price Index for all urban areas for all items, as published by the United States Department of Labor, shall be used to calculate the cost-of-living adjustment.  Nothing in this subsection shall be construed as permitting an adjustment to the rates of tax in subsections (a), (b), and (c)."

     SECTION 4.  Section 235-54, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  In computing the taxable income of any individual, there shall be deducted, in lieu of the personal exemptions allowed by the Internal Revenue Code, personal exemptions computed as follows:  Ascertain the number of exemptions which the individual can lawfully claim under the Internal Revenue Code, add an additional exemption for the taxpayer or the taxpayer's spouse who is sixty-five years of age or older within the taxable year, and multiply that number by [$1,144,] $2,288, for taxable years beginning after December 31, [1984.] 2022.  A nonresident shall prorate the personal exemptions on account of income from sources outside the State as provided in section 235-5.  In the case of an individual with respect to whom an exemption under this section is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual's taxable year begins, the personal exemption amount applicable to such individual under this subsection for such individual's taxable year shall be zero.

     For each taxable year beginning on or after January 1, 2024, the director shall, no later than December 15 of the preceding calendar year, recompute the personal exemption amount by multiplying the dollar amount for the previous tax year by the cost-of-living adjustment factor, if the cost-of-living adjustment factor is greater than zero, and rounding off the resulting product to the nearest $1.  If the cost-of-living adjustment factor is less than zero in a given year, then no adjustment will occur in the following year.  For purposes of this subsection, the cost-of-living adjustment factor is calculated by adding 1.0 to the percentage change in the Urban Hawaii Consumer Price Index for all items, as published by the United States Department of Labor, from July of the prior calendar year to July of the current calendar year.  If the Urban Hawaii Consumer Price Index is discontinued, the Chained Consumer Price Index for all urban areas for all items, as published by the United States Department of Labor, shall be used to calculate the cost-of-living adjustment."

     SECTION 5.  Section 235-55.6, Hawaii Revised Statutes, is amended as follows:

     (1)  By amending subsection (a) to read as follows:

     "(a)  Allowance of credit.

     (1)  In general.  For each resident taxpayer, who files an individual income tax return for a taxable year, and who is not claimed or is not otherwise eligible to be claimed as a dependent by another taxpayer for federal or Hawaii state individual income tax purposes, who maintains a household which includes as a member one or more qualifying individuals (as defined in subsection (b)(1)), there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the applicable percentage of the employment-related expenses (as defined in subsection (b)(2)) paid by the individual during the taxable year.  If the tax credit claimed by a resident taxpayer exceeds the amount of income tax payment due from the resident taxpayer, the excess of the credit over payments due shall be refunded to the resident taxpayer; provided that tax credit properly claimed by a resident individual who has no income tax liability shall be paid to the resident individual; and provided further that no refunds or payment on account of the tax credit allowed by this section shall be made for amounts less than $1.

     (2)  Applicable percentage.  For purposes of paragraph (1), the taxpayer's applicable percentage shall be determined as follows:

          Adjusted gross income         Applicable percentage

          [Not over $25,000                      25%

          Over $25,000 but                       24%

            not over $30,000

          Over $30,000 but                       23%

            not over $35,000

          Over $35,000 but                       22%

            not over $40,000

          Over $40,000 but                       21%

            not over $45,000

          Over $45,000 but                       20%

            not over $50,000

          Over $50,000                           15%.]

          Not over $150,000                      50%

          Over $150,000 but                      45%

            not over $165,000

          Over $165,000 but                      40%

            not over $180,000

          Over $180,000 but                      35%

            not over $195,000

          Over $195,000 but                      30%

            not over $210,000

          Over $210,000 but                      25%

            not over $225,000

          Over $225,000                          20%."

     (2)  By amending subsection (c) to read as follows:

     "(c)  Dollar limit on amount creditable.  The amount of the employment-related expenses incurred during any taxable year which may be taken into account under subsection (a) shall not exceed:

     (1)  [$2,400] $10,000 if there is one qualifying individual with respect to the taxpayer for such taxable year, or

     (2)  [$4,800] $20,000 if there are two or more qualifying individuals with respect to the taxpayer for such taxable year.

The amount determined under paragraph (1) or (2) (whichever is applicable) shall be reduced by the aggregate amount excludable from gross income under section 129 (with respect to dependent care assistance programs) of the Internal Revenue Code for the taxable year."

     SECTION 6.  Section 235-55.7, Hawaii Revised Statutes, is amended as follows:

     (1)  By amending subsection (a) to read as follows:

     "(a)  As used in this section:

(1)  "Adjusted gross income" [is defined by section 235-1.]  means adjusted gross income as defined by the Internal Revenue Code.

     (2)  "Qualified exemption" includes those exemptions permitted under this chapter; provided that a person for whom exemption is claimed has physically resided in the State for more than nine months during the taxable year; and provided that multiple exemption shall not be granted because of deficiencies in vision, hearing, or other disability.

     (3)  "Rent" means the amount paid in cash in any taxable year for the occupancy of a dwelling place which is used by a resident taxpayer or the resident taxpayer's immediate family as the principal residence in this State.  Rent is limited to the amount paid for the occupancy of the dwelling place only, and is exclusive of charges for utilities, parking stalls, storage of goods, yard services, furniture, furnishings, and the like.  Rent shall not include any rental claimed as a deduction from gross income or adjusted gross income for income tax purposes, any ground rental paid for use of land only, and any rent allowance or subsidies received."

     (2)  By amending subsection (c) to read as follows:

     "(c)  Each taxpayer [with an adjusted gross income of less than $30,000] who has paid more than [$1,000] $2,500 in rent during the taxable year for which the credit is claimed may claim a tax credit [of $50] multiplied by the number of qualified exemptions to which the taxpayer is entitled[;] in accordance with the table below; provided each taxpayer sixty-five years of age or over may claim double the tax credit; and provided that a resident individual who has no income or no income taxable under this chapter may also claim the tax credit as set forth in this section.

     Adjusted gross income    Credit per exemption

     for taxpayers filing

     a single return and

     married individuals

     filing separate returns

Under $20,000                               $350

$20,000 under $30,000                       $250

$30,000 under $40,000                       $150

$40,000 and over                            $  0

 

     Adjusted gross income    Credit per exemption

     for married couples

     filing joint returns

     and surviving spouses

Under $40,000                               $350

$40,000 under $60,000                       $250

$60,000 under $80,000                       $150

$80,000 and over                            $  0

 

     Adjusted gross income    Credit per exemption

     for heads of household

Under $30,000                               $350

$30,000 under $45,000                       $250

$45,000 under $60,000                       $150

$60,000 and over                            $  0."

     SECTION 7.  Section 235-55.75, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Each qualifying individual taxpayer may claim a refundable earned income tax credit.  The tax credit, for the appropriate taxable year, shall be [twenty] thirty per cent of the federal earned income tax credit allowed and properly claimed under section 32 of the Internal Revenue Code and reported as such on the individual's federal income tax return."

     SECTION 8.  Section 235-55.85, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Each individual taxpayer may claim a refundable food/excise tax credit multiplied by the number of qualified exemptions to which the taxpayer is entitled in accordance with the table below; provided that [a husband and wife] spouses filing separate tax returns for a taxable year for which a joint return could have been filed by them shall claim only the tax credit to which they would have been entitled had a joint return been filed.

     [Adjusted gross income   Credit per exemption

     for taxpayers filing

     a single return

Under $5,000                                $110

$5,000 under $10,000                        $100

$10,000 under $15,000                       $ 85

$15,000 under $20,000                       $ 70

$20,000 under $30,000                       $ 55

$30,000 and over                            $  0.

     Adjusted gross income        Credit per exemption

     for heads of household,

     married individuals filing

     separate returns, and

     married couples filing

     joint returns

Under $5,000                                $110

$5,000 under $10,000                        $100

$10,000 under $15,000                       $ 85

$15,000 under $20,000                       $ 70

$20,000 under $30,000                       $ 55

$30,000 under $40,000                       $ 45

$40,000 under $50,000                       $ 35

$50,000 and over                            $  0.]

     Adjusted gross income    Credit per exemption

     for taxpayers filing

     a single return

Under $15,000                               $220

$15,000 under $20,000                       $200

$20,000 under $25,000                       $170

$25,000 under $30,000                       $140

$30,000 under $40,000                       $110

$40,000 and over                            $  0.

     Adjusted gross income        Credit per exemption

     for heads of household,

     surviving spouses,

     spouses filing

     separate returns, and

     married couples filing

     joint returns

Under $15,000                               $220

$15,000 under $20,000                       $200

$20,000 under $25,000                       $170

$25,000 under $30,000                       $140

$30,000 under $40,000                       $110

$40,000 under $50,000                       $ 90

$50,000 under $60,000                       $ 70

$60,000 and over                            $  0."

     SECTION 9.  If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of this Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 10.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 11.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2022.

 

INTRODUCED BY:	_____________________________
	BY REQUEST

 

 

Report Title:

Income Tax; Income Tax Credits; Income Tax Brackets; Teacher Expenses

 

Description:

Adds new tax credit for teacher's expenses.  Adds an inflation index for the income tax brackets, personal exemption amount and standard deduction amounts.  Increases the amounts for the income tax brackets, personal exemption amount and standard deduction amounts for tax year 2023.  Increases the adjusted gross income amounts for the qualification of low-income credits.  Increases the amount of the credits that assist working families.

 

 

 

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