HOUSE OF REPRESENTATIVES

H.B. NO.

2042

TWENTY-EIGHTH LEGISLATURE, 2016

H.D. 2

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO WATER CONSERVATION.

 

 

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-    Residential water conservation system cost tax credit.  (a)  There shall be allowed to each individual taxpayer a residential water conservation system cost tax credit.  The credit 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.

     The amount of the tax credit shall be       per cent of the cost of the residential water conservation system incurred and paid during the taxable year up to a maximum of $        ; provided that the residential water conservation system cost shall be incurred after December 31, 2016, for a newly constructed system.

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

     The total amount of tax credits allowed under this section shall not exceed $         for all taxpayers in any taxable year.

(b)  No other credit may be claimed under this chapter for any residential water conservation system costs for which a credit is claimed under this section for the taxable year.

(c)  If a deduction is taken under section 179 (with respect to election to certain expense certain depreciable business assets) of the Internal Revenue Code of 1986, as amended, no tax credit shall be allowed for that portion of the residential water conservation system costs for which the deduction is taken.

The basis of eligible property for depreciation or accelerated cost recovery system purposes for state income taxes shall be reduced by the amount of credit allowable and claimed.  No deduction shall be allowed for that portion of the residential water conservation system costs for which a credit is claimed under this section.

(d)  If the credit under this section exceeds the taxpayer's net income tax liability for the taxable year, the excess of the credit over liability shall be refunded to the taxpayer; provided that no refunds or payments on account of the credits allowed by this section shall be made for amounts less than $1.

All claims for a tax credit under this section 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)  The director of taxation shall:

(1)  Prepare any forms that may be necessary to implement the credit under this section; and

(2)  Require the taxpayer to furnish information to ascertain the validity of the claim for the credit made under this section.

The director may adopt rules pursuant to chapter 91 to effectuate this section.

(f)  As used in this section, "residential water conservation system" means:

(1)  The equipment and supplies used to construct a system for the capturing, infiltrating, and utilizing of rainfall from roofs, constructed catchment surfaces, or other hard surfaces on a residential property; or

(2)  The equipment and supplies used to construct a system for the collection and reuse of gray water, as defined in section 342D-1, on a residential property."

SECTION 2.  New statutory material is underscored.

SECTION 3.  This Act shall take effect on July 1, 2030, and apply to taxable years beginning after December 31, 2016.



Report Title:

Residential Water Conservation System; Tax Credit

 

Description:

Creates a refundable residential water conservation system cost tax credit for newly constructed systems beginning January 1, 2017.  (HB2042 HD2)

 

 

 

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