Category Archives: Net Income (HRS 235)

SB 1394, CD-1

SUBJECT:  INCOME, Historic Preservation Tax Credit

BILL NUMBER:  SB 1394, CD-1

INTRODUCED BY:  Conference Committee

EXECUTIVE SUMMARY:  Establishes a nonrefundable tax credit based on the qualified rehabilitation expenses of a historic structure.  The adoption of this credit would provide tax relief to taxpayers regardless of their need for tax relief. It also would shift the burden of paying for government to the rest of us.

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SB 972, CD-1

SUBJECT:  INCOME, Ship Repair Industry Tax Credit

BILL NUMBER:  SB 972, CD-1

INTRODUCED BY:  Conference Committee

EXECUTIVE SUMMARY:  Establishes the ship repair industry income tax credit for non-profit entities to offset costs incurred to construct and put into service purpose-built floating drydocks at Pearl Harbor for use by the United States Navy. Claims for the ship repair industry income tax credit can be made annually after the drydock is put into service and until the credit is exhausted. Repeals the capital infrastructure tax credit (which was scheduled to sunset on Dec. 31, 2019 anyway).

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SB 301, CD-1

SUBJECT:  INCOME, Disallow REIT Deduction for Dividends Paid

BILL NUMBER:  SB 301, CD-1

INTRODUCED BY:  Conference Committee

EXECUTIVE SUMMARY:  This bill would disallow the dividends paid deduction that real estate investment trusts, or REITs, now enjoy.  The numerous REITs who now own and manage Hawaii real estate would be taxed like any other corporation doing business in Hawaii.

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SB 33, CD-1

SUBJECT:  INCOME, Increase Cap on Motion Picture Production Credit

BILL NUMBER:  SB 33, CD-1

INTRODUCED BY:  Conference Committee

EXECUTIVE SUMMARY:  Increases the aggregate cap on the motion picture, digital media, and film production income tax credit, which now is $35 million, to $50 million.  It may be possible to make the case that the benefits have outweighed the costs.

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SB 495, HD-1

SUBJECT:  INCOME, Nexus Presumptions

BILL NUMBER:  SB 495, HD-1

INTRODUCED BY:  House Committee on Finance

EXECUTIVE SUMMARY:  States that a seller with more than $100,000 in in-state sales or 200 transactions into the state shall be deemed to be doing business in the state for purposes of the income tax law.  Creates a nexus presumption for income tax like the presumption for general excise tax adopted last year.  This bill would apply solely to net income tax, and by implication it would confine Act 41, SLH 2018, to general excise tax.

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SB 1394, HD-1

SUBJECT:  INCOME, Historic Preservation Tax Credit

BILL NUMBER:  SB 1394, HD-1

INTRODUCED BY:  Senate Committee on Ways & Means

EXECUTIVE SUMMARY:  Establishes a nonrefundable tax credit based on the qualified rehabilitation expenses of a historic structure.  The adoption of this credit would provide tax relief to taxpayers regardless of their need for tax relief. It also would shift the burden of paying for government to the rest of us.

Continue reading SB 1394, HD-1