Category Archives: Net Income (HRS 235)

SB 2752 HD 2

SUBJECT:  INCOME, Tax Credit for Filling and Sealing Abandoned Wells

BILL NUMBER:  SB 2752 HD 2

INTRODUCED BY: House Committee on Judiciary & Hawaiian Affairs

EXECUTIVE SUMMARY:   Establishes an income tax credit for taxpayers who are required to seal abandoned wells on their real property. Clarifies the definition of the term “abandoned well”. Requires sellers of real property to disclose the existence of wells on the property. Requires an owner or prior owner of an abandoned well to seal the well at the owner’s or prior owner’s expense. Appropriates funds for three full-time equivalent (3.0 FTE) positions under the Commission on Water Resource Management.  Our view is that the same goals can be accomplished in a more efficient manner by appropriating some money to the commission and allowing it to give grants to those who need it to comply with the law. Continue reading SB 2752 HD 2

SB 2837 HD 1

SUBJECT:  INCOME, Check-off for Spay and Neuter Special Fund

BILL NUMBER:  SB 2837 HD 1

INTRODUCED BY: House Committee on Agriculture

EXECUTIVE SUMMARY:  Establishes a spay and neuter special fund and allows funds from an income tax check-off to be deposited into the special fund. Requires the department of land and natural resources, in collaboration with animal welfare groups and organizations, to conduct a point-in-time count of feral cats per main island by 6/30/23. Requires DLNR to submit a report to the legislature on the point-in-time count prior to the regular session of 2024. Continue reading SB 2837 HD 1

HB 1982 SD 1

SUBJECT:  INCOME, GENERAL EXCISE, ADMINISTRATION, Withholding of Tax by Persons Claiming Film Credit

BILL NUMBER:  HB 1982 SD 1

INTRODUCED BY: Senate Committee on Energy, Economic Development, and Tourism

EXECUTIVE SUMMARY:   Requires every person making payment to a loan-out company and claiming the film tax credit to withhold payments to loan-out companies. Removes the requirement for productions to submit a verification review by a qualified certified public accountant using procedures prescribed by the Department of Business, Economic Development, And Tourism (DBEDT) when applying for the film tax credit. Requires the report by DBEDT to include the dollar amount claimed, name of the company, and name of the qualified production of the taxpayer. Extends the period during which excess income tax credits may be claimed to 12/31/2032. Requires qualified taxpayers to withhold a certain amount and remit that amount. Amends the use of the tax administration special fund. Authorizes the Department of Taxation to establish four full-time equivalent tax auditor positions. Continue reading HB 1982 SD 1

SB 2599 HD 1

SUBJECT:  INCOME, Additional Requirements for Tax Credit for Research Activities

BILL NUMBER:  SB 2599 HD 1

INTRODUCED BY: House Committee on Economic Development

EXECUTIVE SUMMARY: Adds a cap for an eligible taxpayer and the taxpayer’s related entities per taxable year; consolidates the survey and certification requirements; amends the annual aggregate cap; and requires certification on a first-come, first-served basis to be based on the date a complete application is received, subject to certain conditions, for the tax credit for research activities. Continue reading SB 2599 HD 1

HB 1809 SD 1

SUBJECT:  INCOME, Create Renewable Fuels Production Credit

BILL NUMBER:  HB 1809 SD 1

INTRODUCED BY: Senate Committee on Energy, Economic Development, and Tourism

EXECUTIVE SUMMARY:   Establishes a renewable fuels production tax credit.  Our view is that a direct appropriation to buy or subsidize energy production would be far superior because (1) we know how much we are spending and (2) we know what we are buying. Continue reading HB 1809 SD 1

SB 3075 HD 1

SUBJECT: FRANCHISE, INCOME, Earmark Tax Collections for Compliance Resolution Fund

BILL NUMBER:  SB 3075 HD 1

INTRODUCED BY: House Committee on Consumer Protection & Commerce

EXECUTIVE SUMMARY:   Ensures that the $2,000,000 franchise tax payment is credited in full to the compliance resolution fund for use by the division of financial institutions. Specifies that if franchise tax collections are insufficient, the difference will be derived from income tax collections. Clarifies that franchise tax revenues in excess of $2,000,000 shall be deposited into the general fund. Effective 7/1/2050.  We are concerned that the bill is defective because it violates the single subject rule. Continue reading SB 3075 HD 1

SB 2165 SD 1

SUBJECT:  INCOME, Increase and Index Tax Credit for Low-income Household Renters

BILL NUMBER:  SB 2165 SD 1

INTRODUCED BY: Senate Committee on Ways & Means

EXECUTIVE SUMMARY:   Increases the credit amount and the income eligibility cap thresholds for the income tax credit for low-income household renters by using tax brackets. Provides for inflation increases every 3 years based on the urban Hawaii consumer price index. Effective 7/1/2050.  Our view is that it would be more efficient to get low-income taxpayers out of the tax system entirely than to add the complexity that this bill does. Continue reading SB 2165 SD 1