HOUSE OF REPRESENTATIVES	H.B. NO.	2239
TWENTY-NINTH LEGISLATURE, 2018		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO TAXATION.

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

SECTION 1. The purpose of this Act is to incentivize families to take emergency preparedness action and to allow families that may not be able to afford an emergency preparedness kit to acquire one.

SECTION 2. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

"§235-   Emergency supplies income tax credit. (a) There shall be allowed to each taxpayer subject to the tax imposed under this chapter, an emergency supplies income tax credit that shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed. Each taxpayer may claim the income tax credit only once before January 1, 2026.

(b) The emergency supplies income tax credit shall be equal to       per cent of the qualified expenses of the taxpayer, up to a maximum of $1,000.

(c) The director of taxation:

(1) Shall prepare any forms that may be necessary to claim a tax credit under this section;

(2) May require the taxpayer to furnish reasonable information to ascertain the validity of the claim for the tax credit made under this section; and

(3) May adopt rules under chapter 91 necessary to effectuate the purposes of this section.

(d) If the tax credit under this section exceeds the taxpayer's income tax liability, the excess of the credit over liability may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted. All claims for the tax credit under this section, including amended claims, shall be filed on or before the end of the twelfth month following the close of 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.

(e) As used in this section, "qualified expenses" means costs that are directly incurred by the taxpayer to purchase and maintain a seven-day supply of nonperishable food, water, and other necessary emergency supplies for use by the taxpayer and the taxpayer's family in times of emergency or natural disaster."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2050, and shall apply to taxable years beginning after December 31, 2018.

Report Title:

Income Tax Credit; Emergency Supplies

Description:

Establishes an income tax credit for the purchase of household emergency preparedness supplies. (HB2239 HD1)

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