HB2263

Report Title:

Moving Expenses Tax Credit

 

Description:

Establishes a tax credit of up to $7,500 for moving expenses for persons who have either previously paid taxes or been claimed as a dependent on another's tax return and who return to Hawaii.

 

HOUSE OF REPRESENTATIVES	H.B. NO.	2263
TWENTY-FIRST LEGISLATURE, 2002
STATE OF HAWAII

A BILL FOR AN ACT

 

relating to THE moving expenses 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- Moving expenses tax credit. (a) Each resident individual taxpayer shall be allowed a tax credit for moving expenses paid or incurred during the taxable year in connection with the commencement of work by the resident individual taxpayer as an employee or as a self-employed individual at a new principal place of work in the State; provided that the resident individual taxpayer:

(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) Has filed an individual income tax return for one or more previous taxable years or was claimed as a dependent by another taxpayer for federal or Hawaii state individual income tax purposes in one or more previous taxable years.

A qualifying resident individual taxpayer may claim a moving expenses tax credit against the resident individual taxpayer's individual income tax liability for the taxable year for which the individual income tax return is being filed.

(b) The moving expenses tax credit shall be equal to the moving expenses required to move back to Hawaii, but shall not exceed $7,500.

(c) Any tax credit claimed by a resident individual taxpayer pursuant to this section shall be deductible from the resident individual taxpayer's individual income tax liability, if any, for the taxable year in which it is properly claimed. If the tax credit claimed by a resident individual taxpayer exceeds the amount of income tax payment due from the resident individual taxpayer, the excess of credit over payments due shall be refunded to the resident individual taxpayer; provided that:

(1) The tax credit properly claimed by a resident individual who has no income tax liability shall be paid to the resident individual; and

(2) No refunds or payment 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 any forms that may be necessary to claim a credit under this section. The director may also require the taxpayer to furnish reasonable information to ascertain the validity of the claim for credit made under this section and may adopt rules necessary to effectuate the purposes of this section pursuant to chapter 91.

(e) As used in this section, "moving expenses" means the same as in section 217 (with respect to moving expenses) of the Internal Revenue Code."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2001, and before January 1, 2012.

INTRODUCED BY:	_____________________________