HB1738

Report Title:

Tax Credit; Fuel Used for Home Generators

 

Description:

Provides an income tax credit for residential customers who use home generators and are not connected to the electric grid.

HOUSE OF REPRESENTATIVES	H.B. NO.	1738
TWENTY-FIRST LEGISLATURE, 2002
STATE OF HAWAII

A BILL FOR AN ACT

 

relating to taxes.

 

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- Fuel tax credit for home generators. (a) Each resident taxpayer who files an individual income tax return for a taxable year may claim an income tax credit for fuel used to operate a home generator under this section against the Hawaii state individual net income tax.

(b) The tax credit shall be an amount equal to the fuel taxes imposed under section 243-4(a) and paid by such resident taxpayer who is not a metered residential customer of an electric utility during the taxable year, for fuel that is used for the purpose of operating a home generator; provided that the maximum amount of the credit shall not exceed $           in any taxable year.

(c) The tax credit claimed under this section by the resident taxpayer shall be applied against the resident taxpayer's individual income tax liability, if any, for the tax year in which the credit is properly claimed; provided that a husband and wife filing separate returns for a taxable year for which a joint return could have been made by them shall claim only the tax credit to which they would have been entitled had a joint return been filed. If the tax credit claimed by the resident taxpayer under this section exceeds the amount of the income tax payments due from the resident taxpayer, the excess of credit over payments due shall be refunded to the resident taxpayer; provided that the tax credit properly claimed by a resident taxpayer who has no income tax liability shall be paid to the taxpayer; and provided further no refunds or payments on account of the tax credit allowed by this section shall be made for amounts less than $1.

(d) The director of taxation shall prepare such forms as may be necessary to claim a credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91 to effectuate the purpose of this section.

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

(f) Claims for the tax credit 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. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.

(g) As used in this section, "home generator" means an energy generating facility that is located on a resident taxpayer's premises that is not operated in parallel with a utility's transmission and distribution facilities and is intended to provide all of the resident taxpayer's own electrical requirements."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2001.

INTRODUCED BY:	_____________________________