Report Title:

Tax Credit; Drug Treatment

 

Description:

Allows tax credit to businesses that offer drug treatment to their employees for tax years after 12/31/2000. Makes credit equal to 50% of any additional cost to the health insurance premium.

 

HOUSE OF REPRESENTATIVES

H.B. NO.

314

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO TAX CREDITS FOR BUSINESSES OFFERING DRUG TREATMENT TO EMPLOYEES.

 

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

SECTION 1. Substance abuse is one of the most pervasive plagues confronting Hawaii at the outset of the new millennium. Substance abuse costs our State in numerous ways, from prison overcrowding to increased police and court workload, lost economic productivity, excise tax revenue, and work days, and property damage and loss of life.

The purpose of this Act is to offer an economic incentive to the private sector to join in the battle against substance abuse. Approximately seventy per cent of substance and drug abusers are employed. Every lost employee day due to substance abuse only hurts a state economy that cannot afford it. Every person lost to substance abuse is a loss our community cannot afford.

SECTION 2. 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 businesses that offer drug treatment to employees. (a) There shall be allowed to each taxpayer subject to the tax imposed by this chapter an income tax credit which shall be applied against the taxpayer's net individual or corporate tax liability, if any, for the taxable year in which the credit is properly claimed. The tax credit shall be applicable for a business licensed in the State of Hawaii that provides insurance coverage for drug treatment for their employees. The credit shall be equal to fifty per cent of any additional insurance premium that may be added to the health insurance premium up to a maximum of $        .

(b) The tax credit claimed by a resident taxpayer pursuant to this section shall be applied against the resident taxpayer's individual or corporate income tax liability, if any, for the tax year in which the credit is properly claimed. If the tax credit claimed by a resident taxpayer exceeds the amount of income tax payment due from the resident taxpayer, the excess of credit over payments due shall be refunded to the resident taxpayer; provided that no refund or payment on account of the tax credit allowed by this section shall be made for amounts less than $1.

(c) All claims for a tax credit under this section, including any amended claims, shall be filed not later than 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.

(d) The director of taxation shall prepare the appropriate forms to be used under this section, may require proof of the claim for tax credit, and may adopt appropriate rules under chapter 91."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act upon its approval shall apply to taxable years beginning after December 31, 2000.

INTRODUCED BY:

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