Report Title:

Income Tax Credit; Fire Sprinkler System

Description:

Provides an income tax credit for the installation of an automatic fire sprinkler system.

HOUSE OF REPRESENTATIVES

H.B. NO.

1448

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to income tax credit.

 

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

SECTION 1. The purpose of this Act is to allow an income tax credit for the installation of an automatic fire sprinkler system.

SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235-   Automatic fire sprinkler system; income tax credit. (a) Each individual or corporate resident taxpayer that files an individual or corporate net income tax return for a taxable year may claim a tax credit under this section against the Hawaii state individual or corporate net income tax. The tax credit may be claimed for every automatic fire sprinkler system that is installed and placed in service by a taxpayer after June 30, 2005. The tax credit may be claimed as follows:

(b) Automatic fire sprinkler system for:

(1) Single family residential property: thirty-five per cent of the actual cost;

(2) Multi-family residential property: thirty-five per cent of the actual cost; and

(3) Commercial property: thirty-five per cent of the actual cost.

(c) For the purposes of this section:

"Actual cost" means costs related to the automatic fire sprinkler system under subsection (a), including accessories and installation, but not including the cost to consumer incentive premiums unrelated to the operation of the system or offered with the sale of the system and costs for which another credit is claimed under this chapter.

(d) The director of taxation shall prepare any forms that may be necessary to claim a tax credit under this section. The director may also require the taxpayer to furnish reasonable information to ascertain the validity of the claim for credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2005 and shall apply to taxable years beginning after December 31, 2004.

INTRODUCED BY:

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