Tax credits for computers for students. (HB403 HD1)

HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                     A BILL FOR AN ACT



 1      SECTION 1.  The legislature recognizes the value of all
 2 students utilizing computers so that they may become, in
 3 accordance with the National Educational Technology Standards,
 4 capable information seekers, problem solvers, and decision-
 5 makers.  As effective user of technology productivity tools, they
 6 will become better, more informed, and more responsible,
 7 contributing citizens.
 8      The legislature also acknowledges that the attributes of the
 9 21st century work force learner - collaboration, creative
10 thinking, flexibility, innovation, and entreprenuerial spirit -
11 are key to economic growth and development.  It is therefore the
12 belief of the legislature that "Laptops for 24/7 Learning"
13 (Laptops to be accessible every 24 hours, seven days a week) will
14 provide students with the tools and accompanying skills to become
15 highly productive, sought after employees in the 21st century.
16      The purpose of this Act is to create a tax incentive to
17 support increased access to technological tools for all students.
18      SECTION 2.  Section 235, Hawaii Revised Statutes, is amended
19 by adding a new section to be appropriately designated and to
20 read as follows:

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                                     H.B. NO.           H.D. 1

 1      "235-     Credit for laptop computers purchased for
 2 educational purposes.  (a)  There shall be allowed to each
 3 taxpayer, subject to the tax imposed by this chapter a credit for
 4 the purchase of a laptop computer to be used by an eligible
 5 student for educational purposes.  The credit shall be deductible
 6 from the taxpayer's net income tax liability, if any, imposed by
 7 this chapter for the taxable year in which the credit is properly
 8 claimed.
 9      (b)  The amount of the credit determined under this section
10 for the taxable year shall be equal to twenty per cent of:
11      (1)  The purchase price of a laptop computer to be used by
12           an eligible student for educational purposes; or
13      (2)  The total cost of leasing a laptop computer to be used
14           by an eligible student for educational purposes.
15      The amount of the purchase price of or total cost of leasing
16 a laptop computer that may be taken into account with respect to
17 any person shall not exceed $2,000.
18      (c)  Each taxpayer shall be allowed a credit for a
19 maximum of two laptop computers purchased for used by an eligible
20 student for educational purposes.
21      (d)  For purposes of this section:

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                                     H.B. NO.           H.D. 1

 1      "Educational purpose" means relating to the eligible
 2 student's course or other education.  Such term shall not include
 3 courses or other education involving sports, games, or hobbies,
 4 unless such course or other education is part of the individual's
 5 course of instruction.
 6      "Eligible educational institution" has the meaning given to
 7 terms by section 25A (b) (3) of the Internal Revenue Code.
 8      "Eligible student" means, with respect to any academic
 9 period, a student who is:
10      (1)  The taxpayer, the taxpayer's spouse, or any dependent
11           of the taxpayer whom the taxpayer is allowed a
12           deduction under section 151 of the Internal Revenue
13           Code; and 
14      (2)  Is attending kindergarten through grade twelve in
15           Hawaii, or is attending an eligible educational
16           institution and is carrying at least 1/2 the normal
17           full-time work load for the course of study the student
18           is pursuing.
19      "Laptop computer" means a portable programmable electronic
20 device that can store, retrieve, and process data and that is
21 capable of transport from one location to another for use in any
22 location.

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                                     H.B. NO.           H.D. 1

 1      (e)  The credit allowed under this section shall be claimed
 2 against net income tax liability for the taxable year.  A tax
 3 credit under this section that exceeds the taxpayer's income tax
 4 liability may be used as a credit against the taxpayer's income
 5 tax liability in subsequent years until exhausted.
 6      (f)  All claims for tax credits under this section,
 7 including any amended claims, shall be filed on or before the end
 8 of the twelfth month following the close of the taxable year for
 9 which the credits may be claimed.  Failure to comply with the
10 foregoing provisions shall constitute a waiver of the right to
11 claim the credit.
12      (g)  No deduction shall be allowed for that portion of the
13 purchase price of or total cost of leasing a laptop computer paid
14 or incurred for the taxable year that is equal to the amount of
15 the credit determined under this section.
16      (h)  The director of taxation may adopt any rules under
17 chapter 91 and forms necessary to carry out this section."
18      SECTION 3.  New statutory material is underscored.
19      SECTION 4.  This Act shall take effect upon approval.