HRS § 235-110.2 — Credit for school repair and maintenance


§235-110.2 Credit for school repair and
maintenance. (a) There shall be allowed to each taxpayer licensed under
chapter 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 credit
for contributions of in-kind services for the repair and maintenance of public
schools provided by the licensed taxpayer in Hawaii. The credit shall be
deductible from the taxpayer's net income tax liability, if any, imposed by
this chapter for the taxable year in which the credit is properly claimed.
(b) The amount of the credit determined under
this section for the taxable year shall be equal to ten per cent of the value
of contributions of in-kind services to the Hawaii school repair and
maintenance fund for that taxable year; provided that the aggregate value of
the 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 meaning
as defined in section 302A-101.
"Value of contributions of in-kind
services" means the fair market value of uncompensated services or labor
as determined and certified by the department of accounting and general
services.
(d) The credit allowed under this section
shall be claimed against net income tax liability for the taxable year. A tax
credit under this section which exceeds the taxpayer's income tax liability may
be used as a credit against the taxpayer's income tax liability in subsequent
years until exhausted.
(e) All claims for tax credits under this
section, including any amended claims, shall be filed on or before the end of
the twelfth month following the close of the taxable year for which the credits
may be claimed. Failure to comply with the foregoing provision shall
constitute a waiver of the right to claim the credit.
(f) The department of education shall maintain
records of the names of taxpayers eligible for the credit and the total value
of in-kind services contributed for the repair and maintenance of public
schools for the taxable year. All contributions shall be verified by the
department of education. The department of education shall total all
contributions that the department of education certifies. Upon each
determination, the department of education shall issue a certificate to the
taxpayer 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 and
valid certificate signed by the director of taxation, showing that the taxpayer
does not owe the State any delinquent taxes, penalties, or interest.
The taxpayer shall file the certificate from
the department of education with the taxpayer's tax return with the department
of taxation. When the total amount of certified contributions reaches
$2,500,000, the department of education shall immediately discontinue
certifying contributions and notify the department of taxation. In no instance
shall the total amount of certified contributions exceed $2,500,000 for each
taxable year.
(g) The State shall provide not more than
$250,000 in tax credits for contributions of in-kind services in Hawaii for the
repair and maintenance of public schools.
(h) The director of taxation shall prepare any
forms that may be necessary to allow a credit to be claimed under this
section.