REPORT TITLE:
Elder Care; Tax Credit


DESCRIPTION:
Provides an income tax credit in an amount equal to         , to
any taxpayer who cares for an elderly relative who is certified
by the department of human services (DHS) as requiring care in an
intermediate care or skilled nursing facility if the elderly
relative has been receiving such home care for at least 29 days.
Requires DHS to provide certification.  Applies to taxable years
beginning after 12/31/99.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2336
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO INCOME TAX CREDITS FOR ELDERLY 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)  Each
 
 5 resident taxpayer, who files an individual income tax return for
 
 6 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 elder relatives in the
 
10 home against the taxpayer's individual income tax liability;
 
11 provided that a husband and wife filing separate returns for a
 
12 taxable year for which a joint return could have been filed by
 
13 them shall claim only the tax credit to which they would have
 
14 been entitled had a joint return been filed; and provided that a
 
15 resident individual who has no income or no income taxable under
 
16 this chapter and who is not claimed or is not otherwise eligible
 
17 to be claimed as a dependent by a taxpayer for federal or Hawaii
 
18 state individual income tax purposes may also claim the tax
 
19 credit provided in this section.
 
20      (b)  Each individual taxpayer may claim a tax credit for the
 

 
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                                     H.B. NO.           
                                                        
                                                        

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

 
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                                     H.B. NO.           
                                                        
                                                        

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

 
 
 
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                                     H.B. NO.           
                                                        
                                                        

 
 1                less than $1.
 
 2      (f)  All claims for a tax credit under this section,
 
 3 including any amended claims, shall be filed not later than the
 
 4 end of the twelfth month following the close of the taxable year
 
 5 for which the credit may be claimed.  Failure to comply with the
 
 6 foregoing provision shall constitute a waiver of the right to
 
 7 claim the credit.
 
 8      (g)  The director of taxation shall prepare the appropriate
 
 9 forms to be used under this section, may require proof of the
 
10 claim for tax credit, and may adopt appropriate rules under
 
11 chapter 91."
 
12      SECTION 2.  Chapter 346D, Hawaii Revised Statutes, is
 
13 amended by adding a new section to be appropriately designated
 
14 and to read as follows:
 
15      "§346D-    Long-term care; certification of appropriate
 
16 level of care required for purposes of tax credit; respite care
 
17 program.   Upon request by individuals claiming an elder at-home
 
18 long-term care tax credit for providing long-term care at home
 
19 for their elder relatives pursuant to section 235-  , the
 
20 department shall furnish certification stating the level of long-
 
21 term care required for the elder in question."
 
22      SECTION 3.  New statutory material is underscored.
 
23      SECTION 4.  This Act, upon its approval, shall apply to
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 taxable years beginning after December 31, 1999.
 
 2 
 
 3                       INTRODUCED BY:  ___________________________