REPORT TITLE:
Income Tax Credit; Recycle


DESCRIPTION:
Establishes a credit from income tax liability for businesses who
recycle commercial grease and oils into new petroleum or other
products.  Amount of credit is based on dollars per gallon of
recycled gas or oil.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           1595
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO INCOME TAX CREDITS FOR RECYCLING.



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

 1      SECTION 1.  Chapter 235, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "�235-     Recycling credit.  (a)  Each resident taxpayer,
 
 5 who files a state tax return for a taxable year, and who is not
 
 6 claimed or is not otherwise eligible to be claimed as a dependent
 
 7 by another taxpayer for Hawaii state individual income tax
 
 8 purposes, may claim a recycling credit against the resident
 
 9 taxpayer's income tax liability for the taxable year for which
 
10 the income tax return is being filed; provided that the taxpayer
 
11 incorporates and uses discarded grease and oil reclaimed from
 
12 commercial sources in the production of petroleum products or
 
13 other products.
 
14      (b)  The amount of the credit shall be equal to $        for
 
15 each gallon of recycled grease and oil use per taxable year, but
 
16 shall not be more than $        in any one taxable year.
 
17      (c)  The tax credit claimed by a resident taxpayer pursuant
 
18 to this section shall be deductible from the resident taxpayer's
 
19 income tax liability, if any, for the tax year in which the
 

 
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                                     S.B. NO.           1595
                                                        
                                                        

 
 1 credit is properly claimed.  If the tax credit claimed by a
 
 2 resident taxpayer exceeds the amount of income tax payment due
 
 3 from the resident taxpayer, the excess of credit over payment due
 
 4 may be carried forward to successive years until exhausted.
 
 5      (d)  The director of taxation shall prepare forms as may be
 
 6 necessary to claim a credit under this section.  The director may
 
 7 also require the taxpayer to furnish reasonable information in
 
 8 order that the director may ascertain the validity of the claim
 
 9 for credit made under this section.  The director may adopt rules
 
10 necessary to effectuate the purposes of this section pursuant to
 
11 chapter 91.
 
12      (e)  All claims for tax credits under this section,
 
13 including any amended claims, shall be filed on or before the end
 
14 of the twelfth month following the close of the taxable year for
 
15 which the credits may be claimed.  Failure to comply with the
 
16 foregoing provision shall constitute a waiver of the right to
 
17 claim the credit."
 
18      SECTION 2.  New statutory material is underscored.
 
19      SECTION 3.  This Act, upon its approval, shall apply to
 
20 taxable years beginning after December 31, 1998.
 
21 
 
22                           INTRODUCED BY:  _______________________