HOUSE OF REPRESENTATIVES

H.B. NO.

533

TWENTY-EIGHTH LEGISLATURE, 2015

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to agriculture.

 

 

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-     Agricultural buildings or structures tax credit.  (a)  There shall be allowed to each qualified taxpayer subject to the taxes imposed by this chapter, a tax credit that may be claimed for qualified costs in the development or renovation of any agricultural building or structure.  The tax credit shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter.

     (b)  The amount of the tax credit shall be equal to the qualified costs incurred from January 1, 2015, through December 31, 2017, up to a maximum of $1,000,000 of credit in the aggregate for each qualified taxpayer and for all years the credit is available.

     (c)  If the tax credit under this section exceeds the taxpayer's net income tax liability under this chapter for any year for which the credit is taken, the excess of the tax credit may be used as a credit against the taxpayer's net income tax liability under subsequent years until exhausted.

     (d)  Every claim, including amended claims, for a tax credit under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed.  Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

     (e)  If, at any time during the three-year period in which the tax credit may be earned under this section, the costs incurred no longer meet the definition of qualified costs, the credit claimed under this section shall be recaptured.  The recapture shall be equal to one hundred per cent of the total tax credit claimed under this section for the preceding taxable year; provided that the amount of the credit recaptured shall apply only to those costs that no longer meet the definition of qualified costs.  The amount of the recaptured tax credit determined under this subsection shall be added to the taxpayer's tax liability for the taxable year in which the recapture occurs under this subsection.

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

     (g)  Every qualified taxpayer, no later than March 31 of each year for which qualified costs were expended in the previous taxable year, shall submit a written, certified statement to the director of taxation, in the form specified by the director, identifying:

     (1)  Qualified costs, if any, expended in the previous taxable year;

     (2)  The amount of tax credits claimed pursuant to this section, if any, in the previous taxable year; and

     (3)  The net income tax liability under this chapter against which the tax credit is claimed.

     (h)  As used in this section:

     "Agricultural building or structure" means any building or structure, and appurtenances thereto, that qualify under section 46-88.

     "Net income tax liability" means income tax liability reduced by all other tax credits allowed under this chapter.

     "Qualified costs" means any costs for the planning, design, or construction of any new agricultural building or structure, or for the renovation of any existing agricultural building or structure, up to a total of $1,000,000 in the aggregate, incurred after December 31, 2014, and before January 1, 2018; provided that "qualified costs" shall not include land acquisition costs."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2014.

 

INTRODUCED BY:

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Report Title:

Income Tax Credit; Agricultural Buildings or Structures

 

Description:

Establishes an income tax credit for the qualified costs of developing or renovating certain agricultural buildings or structures that are exempt from building permit or building code requirements.

 

 

 

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