Wastewater Treatment Systems

Provides an income tax credit of $450 on the purchase and
installation of an individual wastewater treatment system.

THE SENATE                              S.B. NO.           696
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 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-     Individual wastewater treatment system credit.
 5 (a)  Each resident individual or corporate taxpayer, who files an
 6 income tax return for a taxable year, and who is not claimed or
 7 is not otherwise eligible to be claimed as a dependent by another
 8 taxpayer for Hawaii state individual income tax purposes, may
 9 claim an individual wastewater treatment system credit against
10 the resident taxpayer's individual income tax liability for the
11 taxable year for which the individual income tax return is being
12 filed; provided that the design and performance of the individual
13 wastewater treatment system has been accepted as compliant with
14 environmental quality standards, for example, those of the
15 American Society for Testing and Materials, ISO (International
16 Organization for Standardization) 9000 and ISO 14000, or
17 certified by organizations that warrant environmental quality
18 standards such as NSF (National Sanitation Foundation)
19 International.

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                                     S.B. NO.           696

 1      (b)  The amount of the credit shall be equal to the amount
 2 paid by the taxpayer for the individual wastewater treatment
 3 system, including the installation thereof, during the taxable
 4 year for which the income tax return is being filed, but shall
 5 not be more than $450 for each individual wastewater treatment
 6 system in any one taxable year.
 7      (c)  The tax credit claimed by a resident taxpayer pursuant
 8 to this section shall be deductible from the resident taxpayer's
 9 individual income tax liability, if any, for the tax year in
10 which the credit is properly claimed.  If the tax credit claimed
11 by a resident taxpayer exceeds the amount of income tax payment
12 due from the resident taxpayer, the excess of credit over payment
13 due shall be refunded to the resident taxpayer; provided that the
14 tax credit properly claimed by a resident individual who has no
15 income tax liability shall be paid to the resident individual;
16 and provided further that no refunds or payment on account of the
17 tax credit allowed by this section shall be made for amounts less
18 than $1.
19      (d)  For the purposes of this section, "individual
20 wastewater treatment system" means a self-contained unit that is
21 designed to receive, treat, and dispose of not more than one
22 thousand gallons per day of domestic wastewater by using aerobic

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                                     S.B. NO.           696

 1 or anaerobic means, and that produces an effluent with a five-day
 2 biochemical oxygen demand of not more than thirty milligrams per
 3 liter.  The term includes household aerobic units.  The term does
 4 not include cesspools, septic tanks, or mobile units.
 5      (e)  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      (f)  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.
22                           INTRODUCED BY:_________________________