REPORT TITLE:
Tax Credits; Improvements

DESCRIPTION:
Creates commercial and industrial improvement tax credit of four
per cent of the cost of construction of new facilities; repeals
Act January 1, 2006.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        3015
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO COMMERCIAL AND INDUSTRIAL IMPROVEMENTS.



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-     Commercial and industrial improvement credit.
 
 5 (a)  There shall be allowed to each taxpayer, subject to the
 
 6 taxes imposed by this chapter, a commercial or industrial
 
 7 improvement tax credit which shall be applied against the
 
 8 taxpayer's net income tax liability, if any, imposed by this
 
 9 chapter for the taxable year in which the credit is properly
 
10 claimed.  The tax credit shall be an amount equal to four per
 
11 cent of the cost of the construction of new facilities, made by
 
12 the taxpayer for the taxable year in which the improvements were
 
13 made.
 
14      (b)  The credit allowed under this section shall be claimed
 
15 against the net income tax liability for taxable year.  For the
 
16 purpose of this credit, the "net income tax liability" means net
 
17 income tax liability reduced by all other credits allowed under
 
18 this chapter.
 
19      (c)  If the tax credit under this section exceeds the
 

 
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 1 taxpayer's income tax liability, the excess of the tax credit
 
 2 over liability may be used as a credit against the taxpayer's
 
 3 income tax liability in subsequent years until exhausted.  All
 
 4 claims, included any amended claims, for tax credits under this
 
 5 section shall be filed on or before the end of the twelfth month
 
 6 following the close of the taxable year for which the credit may
 
 7 be claimed.  Failure to comply with the foregoing provision shall
 
 8 constitute a waiver of the right to claim the credit.
 
 9      (d)  The director of taxation shall prepare forms as may be
 
10 necessary to claim the tax credit under this section.  The
 
11 director may also require the taxpayer to furnish information to
 
12 ascertain the validity of a claim for a tax credit made under
 
13 this section."
 
14      SECTION 2.  New statutory material is underscored.
 
15      SECTION 3.  This Act shall take effect upon its approval;
 
16 provided that section 1 of this Act shall apply to taxable years
 
17 beginning after December 31, 2000.  Section 1 of this Act shall
 
18 be repealed on January 1, 2006.