Report Title:
Tax Credit; Brain Drain
Description:
Establishes an income tax credit for college graduates as an incentive to remain in the State after graduation.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1933 |
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TWENTY-FIRST LEGISLATURE, 2002 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO HIGHER EDUCATION INCOME TAX CREDIT.
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- Higher education retention tax credit. (a) Each resident individual taxpayer who:
(1) Files an individual income tax return for a taxable year;
(2) Is not claimed or is not otherwise eligible to be claimed as a dependent by another taxpayer for federal or Hawaii state individual income tax purposes; and
(3) Graduates from a public or private university, college, or community college situated in the State;
may claim a refundable higher education retention income tax credit pursuant to this section, against the resident taxpayer's individual income tax liability for the taxable year for which the individual income tax return is being filed; provided that a resident individual who has no income or no income taxable under this chapter and who is not claimed or is not otherwise eligible to be claimed as a dependent by a taxpayer for federal or Hawaii state individual income tax purposes may claim this credit.
(b) For a resident taxpayer who graduates from any public or private college or university situated in the State, the tax credit shall equal $______ per year but not exceed a total of $______ during the taxpayer's lifetime.
For a resident taxpayer who graduates from any community college situated in the State, the tax credit shall equal $_____ per year but not exceed a total of $_______ during the taxpayer's lifetime.
(c) To qualify for the tax credit, a taxpayer graduate must remain in the State after graduation for at least eleven months out of the taxable year for which the income tax return is filed. No tax credit shall be allowed after years following the issuance of a taxpayer graduate's college or community college degree. A taxpayer may not claim a tax credit for more than one degree at any one time nor claim the tax credit for more than years in the taxpayer's lifetime.
(d) The tax credit shall not be available to:
(1) Any person who has been convicted of a felony and who has been committed to prison and has been physically confined for the full taxable year;
(2) Any person who would otherwise be eligible to be claimed as a dependent but who has been committed to a youth correctional facility and has resided at the facility for the full taxable year; or
(3) Any misdemeanant who has been committed to jail and has been physically confined for the full taxable year.
(e) The tax credits claimed by a resident taxpayer pursuant to this section shall be deductible from the resident taxpayer's individual income tax liability, if any, for the tax year in which they are properly claimed. If the tax credits claimed by a resident taxpayer exceed the amount of income tax payment due from the resident taxpayer, the excess of credits over payments due shall be refunded to the resident taxpayer; provided that tax credits properly claimed by a resident individual who has no income tax liability shall be paid to the resident individual; and provided further that no refunds or payment on account of the tax credits allowed by this section shall be made for amounts less than $1.
(f) All claims for tax credits under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credits may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit.
(g) The director of taxation may adopt rules pursuant to chapter 91 and prescribe forms as necessary to effectuate this section."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect on July 1, 2002 and shall apply to taxable years beginning after December 31, 2000.
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INTRODUCED BY: |
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