HOUSE OF REPRESENTATIVES

H.B. NO.

2712

TWENTY-FIFTH LEGISLATURE, 2010

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to taxation.

 

 

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

 


     SECTION 1.  Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§235-     Purchase of qualified principal residence; income tax credit.  (a)  Any taxpayer who files an individual income tax return for a taxable year, and who purchases a qualified principal residence on or after July 1, 2010, and before July 1, 2011, may claim an income tax credit under this section against the Hawaii state individual net income tax.

     (b)  The tax credit shall be equal to the lesser of five per cent of the purchase price of a qualified principal residence or $          , and shall be applied in equal amounts over the three successive taxable years beginning with the taxable year in which the purchase of the qualified principal residence is made.

     (c)  The credit under this section shall be allowed for the purchase of only one qualified principal residence with respect to any taxpayer.

     (d)  As used in this section, "qualified principal residence" means a single-family residence, whether detached or attached, that has never been occupied, that is purchased to be the principal residence of the taxpayer for a minimum of two years.

     (e)  If the taxpayer does not occupy the qualified principal residence as the taxpayer's principal residence for at least two years immediately following the purchase, the credit shall be canceled.  The department shall calculate and collect from a taxpayer any repayment of the credit allowed under this section.

     (f)  In the case of two taxpayers married, but filing separately, the credit allowed under this section shall be equally apportioned between the two taxpayers.

     (g)  If two or more taxpayers who are not married purchase a qualified principal residence, the amount of the credit allowed under this section shall be allocated among the taxpayers in the same manner as each taxpayer's percentage of ownership, except that the total amount of the credits allowed to all of these taxpayers shall not exceed $          .

     (h)  The director of taxation shall prepare such forms as may be necessary to claim a credit under this section and may adopt rules pursuant to chapter 91.  The director of taxation may require proof to claim the credit, including a certification by the seller of the qualified principal residence that the residence has never been previously occupied.

     (i)  Claims for the tax credit under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the taxable year for which the credit may be claimed.

     (j)  This section shall be repealed on December 31, 2014."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2009.

 

INTRODUCED BY:

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Report Title:

New Homebuyers Income Tax Credit

 

Description:

Provides an income tax credit for the purchase of a principal residence that has not been previously occupied.

 

 

 

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