Report Title:

Tax Credit; International Learning Missions

 

Description:

Provides a tax credit for sponsorship of students or teachers that undertake international learning missions.  (HB2624 HD1)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

2624

TWENTY-FOURTH LEGISLATURE, 2008

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO INTERNATIONAL LEARNING MISSIONS.

 

 

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-     Sponsorship of student and teacher participation in international learning missions; tax credit.  (a)  There shall be allowed to each corporation, including a corporation carrying on business in partnership, subject to the tax imposed by part IV of this chapter, a credit for sponsoring the participation of students and teachers in international learning missions which shall be deductible from the corporation's net tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.

     (b)  The amount of the credit determined under this section for the taxable year shall be equal to one hundred per cent of the qualified costs of sponsoring a student or teacher to participate in an international learning mission; provided that there shall be no credit for the sponsorship of a sixth student or teacher.  The credit allowed for sponsorship of each subsequent student or teacher shall be reduced as follows:

     (1)  Eighty per cent of the qualified costs for the second student or teacher;

     (2)  Sixty per cent of the qualified costs for the third student or teacher;

     (3)  Forty per cent of the qualified costs for the forth student or teacher; and

     (4)  Twenty per cent of the qualified costs for the fifth student or teacher.

     (c)  For purposes of this section:

     "International learning mission" for a student, means an educational program through an accredited educational institution that requires students to live, travel, and study abroad to obtain academic credit at the accredited educational institution.  A teacher who accompanies a student on an international learning mission or who participates in an international learning mission for work purposes shall qualify for a tax credit under this section.

     "Qualified costs" means any costs required for a student or teacher to participate in an international learning mission including travel, boarding, food, registration, or other associated fees, and educational supplies.

     (d)  The credit allowed under this section shall be claimed against net corporation income tax liability for the taxable year.  A tax credit under this section which exceeds the corporation's income tax liability may be used as a credit against the corporation's income tax liability in subsequent years until exhausted.

     (e)  All claims for credits under this section including any amended claims shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credits may be claimed.  Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

     (f)  The director of taxation may adopt any rules under chapter 91 and forms necessary to carry out this section."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2008.