Category Archives: Net Income (HRS 235)

HB 307, Proposed SD-1

SUBJECT:  INCOME, FRANCHISE, Renewable Energy Technologies Credit

BILL NUMBER:  HB 307, Proposed SD-1

INTRODUCED BY:  Senate Committees on Energy, Economic Development, and Tourism, and Commerce, Consumer Protection & Health.

EXECUTIVE SUMMARY:  Amends the renewable energy technologies income tax credit to change limitations for certain technology types.  Provides increased caps for photovoltaic property that is grid-connected and incorporates energy storage system.  Allows credit for commercial seawater air conditioning system.  Generally, the credit is being phased down, perhaps in recognition that the technology involved is no longer new.  If approved, the credit would be an indeterminate expenditure of public dollars out the back door and could carry with it large administrative costs.

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SB 1069, HD-1

SUBJECT:  INCOME, Tax Credit for Helicopter Noise Canceling Technology System

BILL NUMBER:  SB 1069, HD-1

INTRODUCED BY:  House Committee on Judiciary

EXECUTIVE SUMMARY:  Establishes an income tax credit of $_____ for each helicopter noise canceling technology system installed by the qualified taxpayer.  Sunsets 12/31/2021.  A direct appropriation would be preferable as it would provide some accountability for the taxpayer funds being utilized to support this effort.  Meaning, we as taxpayers know what we’re getting and we know how much we’re paying for it.

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SB 301, HD-1

SUBJECT:  INCOME, Disallow REIT Deduction for Dividends Paid

BILL NUMBER:  SB 301, HD-1

INTRODUCED BY:  House Committee on Economic Development & Business

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 1069, SD-1

SUBJECT:  INCOME, Tax Credit for Helicopter Noise Canceling Technology System

BILL NUMBER:  SB 1069, SD-1

INTRODUCED BY:  Senate Committee on Ways & Means

EXECUTIVE SUMMARY:  Establishes an income tax credit of $_____ for each helicopter noise canceling technology system installed by the qualified taxpayer.  Sunsets 12/31/2021.  A direct appropriation would be preferable as it would provide some accountability for the taxpayer funds being utilized to support this effort.  Meaning, we as taxpayers know what we’re getting and we know how much we’re paying for it.

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SB 301, HD-1

SUBJECT:  INCOME, Disallow REIT Deduction for Dividends Paid

BILL NUMBER:  SB 301, SD-1, HD-1

INTRODUCED BY:  House Committee on Economic Development & Business

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 1310, HD-1

SUBJECT:  INCOME, Individual Housing Accounts

BILL NUMBER:  SB 1310, HD-1

INTRODUCED BY:  House Committee on Housing

EXECUTIVE SUMMARY:  Increases the cap amounts of the tax deduction for individual housing accounts. Authorizes certain funds from an individual housing account to be used to obtain rental housing. Authorizes the accounts to be placed in a community development financial institution.  The concept of reviving the IHA does appear to merit discussion given the curtailment of the mortgage interest deduction at the federal level.  The current draft is technically flawed and should be clarified.

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