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§235-55.7  Income tax credit for low-income household renters


Published: 2015

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     §235-55.7  Income tax credit for low-income

household renters.  (a)  As used in this section:

     (1)  "Adjusted gross income" is defined by

section 235-1.

     (2)  "Qualified exemption" includes those

exemptions permitted under this chapter; provided that a person for whom

exemption is claimed has physically resided in the State for more than nine

months during the taxable year; and provided that multiple exemption shall not

be granted because of deficiencies in vision, hearing, or other disability.

     (3)  "Rent" means the amount paid in cash in

any taxable year for the occupancy of a dwelling place which is used by a

resident taxpayer or the resident taxpayer's immediate family as the principal

residence in this State.  Rent is limited to the amount paid for the occupancy

of the dwelling place only, and is exclusive of charges for utilities, parking

stalls, storage of goods, yard services, furniture, furnishings, and the like. 

Rent shall not include any rental claimed as a deduction from gross income or

adjusted gross income for income tax purposes, any ground rental paid for use

of land only, and any rent allowance or subsidies received.

     (b)  Each resident taxpayer who occupies and

pays rent for real property within the State as the resident taxpayer's

residence or the residence of the resident taxpayer's immediate family which is

not partially or wholly exempted from real property tax, who is not eligible to

be claimed as a dependent for federal or state income taxes by another, and who

files an individual net income tax return for a taxable year, may claim a tax

credit under this section against the resident taxpayer's Hawaii state

individual net income tax.

     (c)  Each taxpayer with an adjusted gross

income of less than $30,000 who has paid more than $1,000 in rent during the

taxable year for which the credit is claimed may claim a tax credit of $50

multiplied by the number of qualified exemptions to which the taxpayer is

entitled; provided each taxpayer sixty-five years of age or over may claim

double the tax credit; and provided that a resident individual who has no

income or no income taxable under this chapter may also claim the tax credit as

set forth in this section.

     (d)  If a rental unit is occupied by two or

more individuals, and more than one individual is able to qualify as a

claimant, the claim for credit shall be based upon a pro rata share of the rent

paid.

     (e)  The tax credits shall be deductible from

the taxpayer's individual net income tax for the tax year in which the credits

are properly claimed; provided that a husband and wife filing separate returns

for a taxable year for which a joint return could have been made by them shall

claim only the tax credits to which they would have been entitled had a joint

return been filed.  In the event the allowed tax credits exceed the amount of

the income tax payments due from the taxpayer, the excess of credits over

payments due shall be refunded to the taxpayer; provided that allowed tax

credits properly claimed by an individual who has no income tax liability shall

be paid to the individual; and provided further that no refunds or payments on

account of the tax credits allowed by this section shall be made for amounts

less than $1.

     (f)  The director of taxation shall prepare and

prescribe the appropriate form or forms to be used herein, may require proof of

the claim for tax credits, and may adopt rules pursuant to chapter 91.

     (g)  All of the provisions relating to

assessments and refunds under this chapter and under section 231-23(c)(1) shall

apply to the tax credits hereunder.

     (h)  Claims for tax credits under this section,

including any amended claims thereof, shall be filed on or before the end of

the twelfth month following the taxable year for which the credit may be

claimed. [L Sp 1977 1st, c 15, §1; am L 1981, c 230, §1; gen ch 1985; am L

1989, c 321, §5; am L 1990, c 98, §1]

 

Revision Note

 

  In subsection (g), "231-23(c)(1)" substituted for

"231-23(d)(1)".