Bill Text: HI SB2654 | 2022 | Regular Session | Amended

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Bill Title: Relating To Water Rationing.

Spectrum: Partisan Bill (Democrat 11-0)

Status: (Engrossed - Dead) 2022-03-10 - Referred to WAL, CPC, FIN, referral sheet 24 [SB2654 Detail]

Download: Hawaii-2022-SB2654-Amended.html

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THE SENATE	S.B. NO.	2654
THIRTY-FIRST LEGISLATURE, 2022		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

 

 

RELATING TO WATER RATIONING.

 

 

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 part I to be appropriately designated and to read as follows:

     "§235-     Water rationing; income tax credit.  (a)  Each individual or corporate taxpayer that files an individual or corporate net income tax return for a taxable year may claim a tax credit under this section against the Hawaii state individual or corporate net income tax.  The tax credit may be claimed for every eligible water rationing system that is installed and placed in service in the State by a taxpayer during the taxable year.  The tax credit may be claimed as follows:

     (1)  For each rain barrel system:        per cent of the actual cost or the cap amount determined in subsection (b);

     (2)  For each water catchment system:        per cent of the actual cost or the cap amount determined in subsection (b), whichever is less;

     (3)  For home water system efficiency upgrades:        per cent of the actual cost or the cap amount determined in subsection (b), whichever is less; and

     (4)  For dual-use piping systems:        per cent of the actual cost or the cap amount determined in subsection (b), whichever is less;

provided further that multiple owners of a single system shall be entitled to a single tax credit; provided further that the tax credit shall be apportioned between the owners in proportion to their contribution to the cost of the system.

     In the case of a partnership, S corporation, estate, or trust, the tax credit allowable is for every eligible water rationing system that is installed and placed in service in the State by the entity.  The cost upon which the tax credit is computed shall be determined at the entity level.  Distribution and share of credit shall be determined pursuant to administrative rule.

     (b)  The amount of credit allowed for each eligible water rationing system shall not exceed the applicable cap amount, which shall be determined as follows:

     (1)  For rain barrel systems, the cap amounts shall be:

          (A)  $           per system for single-family residential property;

          (B)  $           per unit per system for multi-family residential property; and

          (C)  $           per system for commercial property;

     (2)  For water catchment systems, the cap amounts shall be:

          (A)  $           per system for single-family residential property;

          (B)  $           per unit per system for multi-family residential property; and

          (C)  $          per system for commercial property;

     (3)  For home water system efficiency upgrades, the cap amounts shall be:

          (A)  $           per system for single-family residential property;

          (B)  $           per unit per system for multi-family residential property; and

          (C)  $           per system for commercial property; and

     (4)  For dual-use piping systems, the cap amounts shall be:

          (A)  $           per system for single-family residential property;

          (B)  $           per unit per system for multi-family residential property; and

          (C)  $           per system for commercial property.

     (c)  For the purposes of this section:

     "Actual cost" means costs related to water rationing systems under subsection (a), including accessories and installation, but not including the cost of consumer incentive premiums unrelated to the operation of the system or offered with the sale of the system and costs for which another credit is claimed under this chapter.

     "Alternate water sources for nonpotable applications" means systems that:

     (1)  Meet the standards and specifications as described in the International Association of Mechanical and Plumbing Officials (IAMPO) Uniform Plumbing Code, whose edition is adopted by the respective county where the taxpayer resides; and

     (2)  Are designed and operated according to the Hawaii department of health's Guidelines for the Reuse of Gray Water (July 22, 2009).

     "Household use" means any use to which heated water is commonly put in a residential setting, including commercial application of those uses.

     "Nonpotable rainwater catchment system" means systems that meet the standards and specifications as described in the International Association of Mechanical and Plumbing Officials (IAMPO) Uniform Plumbing Code, whose edition is adopted by the respective county where the taxpayer resides.

     "Potable rainwater catchment system" means systems that meet the standards and specifications as described in the International Association of Mechanical and Plumbing Officials (IAMPO) Uniform Plumbing Code, whose edition is adopted by the respective county where the taxpayer resides.

     "Water rationing system" means a new system that reduces the amount of water used by a residential or commercial entity.

     (d)  For taxable years beginning after December 31, 2005, the dollar amount of any utility rebate shall be deducted from the cost of the qualifying system and its installation before applying the state tax credit.

     (e)  The director of taxation shall prepare any forms that may be necessary to claim a tax credit under this section, including forms identifying the system type of each tax credit claimed under this section.  The director may also require the taxpayer to furnish reasonable information to ascertain the validity of the claim for credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91.

     (f)  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 this subsection shall constitute a waiver of the right to claim the credit.

     (g)  To the extent feasible, using existing resources to assist the water-rationing policy review and evaluation, the department shall assist with data collection on the following for each taxable year:

     (1)  The number of water rationing systems that have qualified for a tax credit during the calendar year by:

          (A)  System type; and

          (B)  Taxpayer type (corporate and individual); and

     (2)  The total cost of the tax credit to the State during the taxable year by:

          (A)  System type; and

          (B)  Taxpayer type.

     (h)  This section shall apply to water rationing systems that are installed and placed in service on or after July 1, 2022."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2050, and shall apply to taxable years beginning after December 31, 2050.

 

Report Title:

Income Tax Credit; Water Rationing Systems

 

Description:

Establishes an income tax credit for water rationing systems.  Effective 7/1/2050.  Applies to taxable years beginning after 12/31/2050.  (SD1)

 

 

 

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