§235-55.7  Income tax credit for low-incomehousehold renters.  (a)  As used in this section:

(1)  "Adjusted gross income" is defined bysection 235-1.

(2)  "Qualified exemption" includes thoseexemptions permitted under this chapter; provided that a person for whomexemption is claimed has physically resided in the State for more than ninemonths during the taxable year; and provided that multiple exemption shall notbe granted because of deficiencies in vision, hearing, or other disability.

(3)  "Rent" means the amount paid in cash inany taxable year for the occupancy of a dwelling place which is used by aresident taxpayer or the resident taxpayer's immediate family as the principalresidence in this State.  Rent is limited to the amount paid for the occupancyof the dwelling place only, and is exclusive of charges for utilities, parkingstalls, storage of goods, yard services, furniture, furnishings, and the like. Rent shall not include any rental claimed as a deduction from gross income oradjusted gross income for income tax purposes, any ground rental paid for useof land only, and any rent allowance or subsidies received.

(b)  Each resident taxpayer who occupies andpays rent for real property within the State as the resident taxpayer'sresidence or the residence of the resident taxpayer's immediate family which isnot partially or wholly exempted from real property tax, who is not eligible tobe claimed as a dependent for federal or state income taxes by another, and whofiles an individual net income tax return for a taxable year, may claim a taxcredit under this section against the resident taxpayer's Hawaii stateindividual net income tax.

(c)  Each taxpayer with an adjusted grossincome of less than $30,000 who has paid more than $1,000 in rent during thetaxable year for which the credit is claimed may claim a tax credit of $50multiplied by the number of qualified exemptions to which the taxpayer isentitled; provided each taxpayer sixty-five years of age or over may claimdouble the tax credit; and provided that a resident individual who has noincome or no income taxable under this chapter may also claim the tax credit asset forth in this section.

(d)  If a rental unit is occupied by two ormore individuals, and more than one individual is able to qualify as aclaimant, the claim for credit shall be based upon a pro rata share of the rentpaid.

(e)  The tax credits shall be deductible fromthe taxpayer's individual net income tax for the tax year in which the creditsare properly claimed; provided that a husband and wife filing separate returnsfor a taxable year for which a joint return could have been made by them shallclaim only the tax credits to which they would have been entitled had a jointreturn been filed.  In the event the allowed tax credits exceed the amount ofthe income tax payments due from the taxpayer, the excess of credits overpayments due shall be refunded to the taxpayer; provided that allowed taxcredits properly claimed by an individual who has no income tax liability shallbe paid to the individual; and provided further that no refunds or payments onaccount of the tax credits allowed by this section shall be made for amountsless than $1.

(f)  The director of taxation shall prepare andprescribe the appropriate form or forms to be used herein, may require proof ofthe claim for tax credits, and may adopt rules pursuant to chapter 91.

(g)  All of the provisions relating toassessments and refunds under this chapter and under section 231-23(c)(1) shallapply 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 ofthe twelfth month following the taxable year for which the credit may beclaimed. [L Sp 1977 1st, c 15, §1; am L 1981, c 230, §1; gen ch 1985; am L1989, c 321, §5; am L 1990, c 98, §1]

 

Revision Note

 

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