REPORT TITLE:
Elder Care; Tax Credit


DESCRIPTION:
Provides an income tax credit in an amount equal to $        , to
any taxpayer who cares for a qualified elder relative.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
HOUSE OF REPRESENTATIVES                H.B. NO.112        
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO INCOME TAX CREDITS FOR ELDER AT-HOME CARE.



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

 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-    Elder at-home long-term care tax credit.  (a)
 
 5 Each resident taxpayer, who files an individual income tax return
 
 6 for a taxable year, and who is not claimed or is not otherwise
 
 7 eligible to be claimed as a dependent by another taxpayer for
 
 8 federal or Hawaii state individual income tax purposes, may claim
 
 9 a tax credit for the long-term care of qualified elder relatives
 
10 in the home against the taxpayer's individual income tax
 
11 liability; provided that:
 
12      (1)  A husband and wife filing separate returns for a
 
13           taxable year for which a joint return could have been
 
14           filed by them shall claim only the tax credit to which
 
15           they would have been entitled had a joint return been
 
16           filed; and
 
17      (2)  A resident individual who has no income or no income
 
18           taxable under this chapter and who is not claimed or is
 
19           not otherwise eligible to be claimed as a dependent by
 

 
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 1           a taxpayer for federal or Hawaii state individual
 
 2           income tax purposes may also claim the tax credit
 
 3           provided in this section.
 
 4      (b)  Each individual taxpayer may claim a tax credit for the
 
 5 long-term care of a qualified elder relative in the home as
 
 6 provided in this section in an amount equal to $         .  In
 
 7 order to claim a tax credit under this section, the qualified
 
 8 elder relative shall:
 
 9      (1)  Be sixty-five years of age or older;
 
10      (2)  Be totally disabled or chronically ill and otherwise
 
11           would have to be cared for in a long-term care facility
 
12           including intermediate care or skilled nursing
 
13           facilities or nursing homes;
 
14      (3)  Be certified by the department of human services
 
15           pursuant to section 346D-   as requiring the level of
 
16           care provided in a long-term intermediate care or
 
17           skilled nursing facility or nursing home during the
 
18           taxable year for which the credit is claimed; and
 
19      (4)  Have been cared for and maintained in the taxpayer's
 
20           residence for a period of not less than twenty-nine
 
21           days.
 
22      (c)  In order to claim a tax credit under this section, no
 
23 taxpayer shall:
 

 
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 1      (1)  Have placed the qualified elder relative for whom the
 
 2           tax credit is claimed in any for-profit adult day care
 
 3           center, long-term intermediate care or skilled nursing
 
 4           facility, or nursing home for a period of more than
 
 5           twenty-nine days during the taxable year;
 
 6      (2)  Operate any type of nonprofit or for-profit care
 
 7           service for handicapped or elder individuals; or
 
 8      (3)  Claim a tax credit under section 235-55.6.
 
 9      (d)  As used in this section, "relative" means any person
 
10 related to the taxpayer or the taxpayer's spouse as a
 
11 grandparent, parent, son, daughter, aunt, uncle, brother, sister,
 
12 or first cousin.
 
13      (e)  The tax credit claimed by a resident taxpayer pursuant
 
14 to this section shall be deductible from the resident taxpayer's
 
15 individual income tax liability, if any, for the tax year in
 
16 which the credit is properly claimed.  If the tax credit claimed
 
17 by a resident taxpayer exceeds the amount of income tax payment
 
18 due from the resident taxpayer, the excess of credit over
 
19 payments due shall be refunded to the resident taxpayer; provided
 
20 that:
 
21      (1)  A tax credit properly claimed by a resident individual
 
22           who has no income tax liability shall be paid to the
 
23           resident individual; and
 

 
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 1      (2)  No refund or payment on account of the tax credit
 
 2           allowed by this section shall be made for amounts less
 
 3           than $1.
 
 4      (f)  All claims for a tax credit under this section,
 
 5 including any amended claims, shall be filed not later than the
 
 6 end of the twelfth month following the close of the taxable year
 
 7 for which the credit may be claimed.  Failure to comply with the
 
 8 foregoing provision shall constitute a waiver of the right to
 
 9 claim the credit.
 
10      (g)  The director of taxation shall prepare the appropriate
 
11 forms to be used under this section, may require proof of the
 
12 claim for tax credit, and may adopt appropriate rules under
 
13 chapter 91."
 
14      SECTION 2.  Chapter 346D, Hawaii Revised Statutes, is
 
15 amended by adding a new section to be appropriately designated
 
16 and to read as follows:
 
17      "§346D-    Long-term care; certification of appropriate
 
18 level of care required for purposes of tax credit; respite care
 
19 program.  Upon request by individuals claiming an elder at-home
 
20 long-term care tax credit for providing long-term care at home
 
21 for their qualified elder relatives pursuant to section 235-  ,
 
22 the department shall furnish certification stating the level of
 
23 long-term care required for the elder in question."
 

 
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                                     H.B. NO.112        
                                                        
                                                        

 
 1      SECTION 3.  New statutory material is underscored.
 
 2      SECTION 4.  This Act, upon its approval, shall apply to
 
 3 taxable years beginning after December 31, 1998.
 
 4 
 
 5                           INTRODUCED BY:  _______________________