§235-110.2  Credit for school repair andmaintenance.  (a)  There shall be allowed to each taxpayer licensed underchapter 444, 460J, or 464, who is subject to the tax imposed by this chapter,and does not owe the State delinquent taxes, penalties, or interest, a creditfor contributions of in-kind services for the repair and maintenance of publicschools provided by the licensed taxpayer in Hawaii.  The credit shall bedeductible from the taxpayer's net income tax liability, if any, imposed bythis chapter for the taxable year in which the credit is properly claimed.

(b)  The amount of the credit determined underthis section for the taxable year shall be equal to ten per cent of the valueof contributions of in-kind services to the Hawaii school repair andmaintenance fund for that taxable year; provided that the aggregate value ofthe contributions of in-kind services claimed by a taxpayer shall not exceed$40,000.

(c)  For purposes of this section:

"Public schools" has the same meaningas defined in section 302A-101.

"Value of contributions of in-kindservices" means the fair market value of uncompensated services or laboras determined and certified by the department of accounting and generalservices.

(d)  The credit allowed under this section shallbe claimed against net income tax liability for the taxable year.  A tax creditunder this section which exceeds the taxpayer's income tax liability may beused as a credit against the taxpayer's income tax liability in subsequentyears until exhausted.

(e)  All claims for tax credits under thissection, including any amended claims, shall be filed on or before the end ofthe twelfth month following the close of the taxable year for which the creditsmay be claimed.  Failure to comply with the foregoing provision shallconstitute a waiver of the right to claim the credit.

(f)  The department of education shall maintainrecords of the names of taxpayers eligible for the credit and the total valueof in-kind services contributed for the repair and maintenance of publicschools for the taxable year.  All contributions shall be verified by thedepartment of education.  The department of education shall total allcontributions that the department of education certifies.  Upon eachdetermination, the department of education shall issue a certificate to thetaxpayer certifying:

(1)  The amount of the contribution;

(2)  That the taxpayer is licensed under chapter 444,460J, or 464; and

(3)  That the taxpayer has obtained a current andvalid certificate signed by the director of taxation, showing that the taxpayerdoes not owe the State any delinquent taxes, penalties, or interest.

The taxpayer shall file the certificate fromthe department of education with the taxpayer's tax return with the departmentof taxation.  When the total amount of certified contributions reaches$2,500,000, the department of education shall immediately discontinuecertifying contributions and notify the department of taxation.  In no instanceshall the total amount of certified contributions exceed $2,500,000 for eachtaxable year.

(g)  The State shall provide not more than$250,000 in tax credits for contributions of in-kind services in Hawaii for therepair and maintenance of public schools.

(h)  The director of taxation shall prepare anyforms that  may be necessary to allow a credit to be claimed under thissection. [L 2001, c 309, §2; am L 2004, c 213, §2]

 

Cross References

 

  Hawaii 3R's school repair and maintenance fund, see§302A-1502.4.

  School repair and maintenance fund (Helping Hands Hawaii),see §302A-1502.5.