THE SENATE	S.B. NO.	2959
THIRTY-SECOND LEGISLATURE, 2024
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- Income tax credit; medical travel expenses. (a) Each resident taxpayer, who is not eligible to be claimed by another as a dependent for federal or state income taxes, who paid for certain travel expenses, not covered by insurance, for the purpose of obtaining medical care for the taxpayer's own person, or for obtaining medical care for a dependent of the resident taxpayer, and who files an individual net income tax return for a taxable year, may claim a tax credit under this section against the resident taxpayer's Hawaii state individual net income tax, subject to the requirements of this section.

(b) Each taxpayer with an adjusted gross income of less than $          who paid for travel expenses, not covered by insurance, for the purpose of obtaining medical care for the taxpayer's own person, or for obtaining medical care for a dependent of the resident taxpayer, during the taxable year for which the credit is claimed, may claim a tax credit in an amount equal to       per cent of the travel expenses paid.

(c) The tax credits shall be deductible from the taxpayer's individual net income tax for the tax year in which the credits are properly claimed; provided that spouses filing separate returns for a taxable year for which a joint return could have been made by them shall claim only the tax credits to which they would have been entitled had a joint return been filed. If the allowed tax credits exceed the amount of the income tax payments due from the taxpayer, the excess of credits over payments due shall be refunded to the taxpayer; provided further that no refunds or payments on account of the tax credits allowed by this section shall be made for amounts less than $1.

(d) All of the provisions relating to assessments and refunds under this chapter and under section 231-23(c)(1) shall apply to the tax credits hereunder.

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

(f) The director of taxation shall prepare and prescribe the appropriate forms to be used herein, require proof of claims for tax credits, and adopt rules pursuant to chapter 91 necessary for the purposes of this section."

SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 3. New statutory material is underscored.

SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2023.

INTRODUCED BY:

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Report Title:

Income Taxation; Individuals; Medical Travel; Tax Credit

Description:

Establishes an income tax credit for medically-related travel expenses not covered by insurance.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.