Income Tax; Home Care Credit

Establishes the home care income tax credit for an amount equal
to $250 a month for the home care of a qualified individual but
not to exceed $3,000 per taxable year.

HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  An important community-based alternative to
 2 long-term nursing home care is home care.  Nursing home care is
 3 extremely expensive for both the family and government, costing
 4 between $3,000 to $6,000 per month, while home care is relatively
 5 inexpensive since services are rendered at home by family,
 6 friends, and other caregivers.
 7      The purpose of this Act is to provide for an income tax
 8 credit up to $3,000 per year to any taxpayer who cares for a
 9 person or persons at home.
10      SECTION 2.  Chapter 235, Hawaii Revised Statutes, is amended
11 by adding a new section to be appropriately designated and to
12 read as follows:
13      "235-    Home care credit.  (a)  Each resident individual
14 taxpayer, who files an individual income tax return for a taxable
15 year, and who is not claimed or is not otherwise eligible to be
16 claimed as a dependent by another taxpayer for Hawaii state
17 individual income tax purposes, may claim a home care credit
18 against the resident taxpayer's individual income tax liability
19 for the taxable year for which the individual income tax return

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                                     H.B. NO.           

 1 is being filed; provided that:
 2      (1)  The taxpayer provides care in the taxpayer's residence
 3           for at least one person that is certified by the
 4           department of human services as requiring custodial,
 5           intermediate, or skilled nursing care and that care is
 6           being provided in the residence; and
 7      (2)  No credit is claimed under 235-55.6.
 8      (b)  The amount of the credit shall be equal to $250 for
 9 each full month of home care provided in the residence not to
10 exceed $3,000 for each taxable year for which the individual
11 income tax return is being filed.
12      (c)  The tax credit claimed by a resident taxpayer pursuant
13 to this section shall be applied against the resident taxpayer's
14 individual income tax liability, if any, for the tax year in
15 which the credit is properly claimed.  If the tax credit claimed
16 by a resident taxpayer exceeds the amount of income tax payment
17 due from the resident taxpayer, the excess of credit over payment
18 due shall be refunded to the resident taxpayer; provided that:
19      (1)  The tax credit properly claimed by a resident
20           individual who has no income tax liability shall be
21           paid to the resident individual; and
22      (2)  No refunds or payment on account of the tax credit
23           allowed by this section shall be made for amounts less

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 1           than $1.
 2      (d)  For the purposes of this section, the department of
 3 human services shall prepare forms as may be necessary for proper
 4 certification of the status of the individual requiring care and
 5 the provision of that care in the taxpayer's residence.
 6      (e)  The director of taxation shall prepare forms as may be
 7 necessary to claim a credit under this section.  The director may
 8 also require the taxpayer to furnish reasonable information in
 9 order that the director may ascertain the validity of the claim
10 for credit made under this section.  The director may adopt rules
11 necessary to effectuate the purposes of this section pursuant to
12 chapter 91.
13      (f)  All claims for tax credits under this section,
14 including any amended claims, shall be filed on or before the end
15 of the twelfth month following the close of the taxable year for
16 which the credits may be claimed.  Failure to comply with the
17 foregoing provision shall constitute a waiver of the right to
18 claim the credit."
19      SECTION 3.  New statutory material is underscored.
20      SECTION 4.  This Act, upon its approval, shall apply to

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 1 taxable years beginning after December 31, 1998.
 3                           INTRODUCED BY:  _______________________