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


§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.