HOUSE OF REPRESENTATIVES	H.B. NO.	682
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII

A BILL FOR AN ACT

relating to income tax credits for Ridesharing.

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

SECTION 1. The legislature finds that traffic is a major problem for commuters in Hawaii. The department of transportation has as part of its defined mission in HRS 26-19 "The department shall develop and promote ridesharing programs which shall include but not be limited to, carpool and vanpool programs, and may assist organizations interested in promoting similar programs, arrange for contracts with private organizations to manage and operate these programs, and assist in the formulation of ridesharing arrangements. Ridesharing programs include informal arrangements in which two or more persons ride together in a motor vehicle."

This Act would help the department meet this mandate by encouraging ridesharing with a personal income tax credit.

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

§235- Carpooling; ridesharing; commuters; income tax credit. (a) There shall be allowed to each qualified commuter subject to the tax imposed under this chapter, a ridesharing income tax credit that shall be deductible from the qualified teacher's net income tax liability, if any, imposed by this chapter for the taxable year in which the credit is properly claimed.

(b) The amount of the tax credit shall be equal to $19 dollars per day of ridesharing for taxable year and shall not exceed $5000 per qualified commuter.

(c) If the tax credit under this section exceeds the taxpayer's net income tax liability, the excess of the credit over liability may be used as a credit against the taxpayer's net income tax liability in the following taxable year, and the succeeding two years if necessary, until exhausted.

(d) The director of taxation shall prepare any forms that may be necessary to claim an exclusion under this section. The director may also require the qualified commuter to furnish reasonable information to ascertain the validity of the claim for an exclusion made under this section and may adopt rules to effectuate the purposes of this section pursuant to chapter 91.

(e) The department of taxation shall submit to the legislature an annual report twenty days prior to the convening of each regular session on the amount of credits used by qualified commuters.

(f) As used in this section:

"Commuter" a Hawaii taxpayer who travels more than two miles to work.

"Carpooling" or "Ridesharing" means two or more people who travel together in one car for more than two miles going to paid employment or school."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2023.

INTRODUCED BY:

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Report Title:

Carpooling; ridesharing; commuters; income tax credit

Description:

Provides a carpooling income tax credit for qualified commuters.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.