RELATING TO TAXATION.

HB1251

HOUSE OF REPRESENTATIVES

H.B. NO.

1251

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to taxation
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION
1.
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Chapter 235, Hawaii Revised Statutes,
is amended by adding a new section to be appropriately designated and to read
as follows:

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�235-
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Refundable insurance
premium tax credit.
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(a)
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There shall be allowed to each qualified taxpayer subject to the tax
imposed by this chapter, a credit to offset the cost of real property insurance
premiums on qualified properties, which shall be deductible from the net income
tax liability of the qualified taxpayer, if any, imposed by this chapter for
the taxable year in which the credit is properly claimed.

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(b)
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The amount of the tax credit shall be equal to per
cent of the taxpayer's yearly real property insurance premium for a qualified
property.

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(c)
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The director of taxation:

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(1)
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Shall prepare any forms that may be
necessary to claim a tax credit under this section;

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(2)
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May require the taxpayer to furnish
reasonable information to ascertain the validity of the claim for the tax
credit made under this section; and

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(3)
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May adopt rules under chapter 91 necessary
to effectuate the purposes of this section.

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(d)
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If the tax credit claimed by the taxpayer under this section exceeds the
amount of the income tax payments due from the taxpayer, the excess of credit
over payments due shall be refunded to the taxpayer; provided that the tax
credit properly claimed by a taxpayer who has no income tax liability shall be
paid to the taxpayer; and provided further that no refunds or payments on
account of the tax credit allowed by this section shall be made for amounts
less than $1.
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All claims for the tax
credit under this section, including amended claims, shall be filed on or
before the end of the twelfth month following the close of the taxable year for
which the credit may be claimed.
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Failure
to comply with the foregoing provision shall constitute a waiver of the right
to claim the credit.

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(e)
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For the purposes of this section:

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"Owner-occupant" means any
individual in whose name sole or joint legal title is held in real property
that, simultaneous to the ownership, serves as the individual's principal
residence, as defined by the department, for a period of not less than three
hundred sixty-five consecutive days; provided that the individual shall retain
complete possessory control of the premises of the real property during this
period.
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An individual shall not be
deemed to have complete possessory control of the premises if the individual
rents, leases, or assigns the premises for any period of time to any other
person in whose name legal title is not held; except that an individual shall
be deemed to have complete possessory control even when the individual conveys
or transfers the real property into a trust for estate planning purposes and
continues in the use of the premises as the individual's principal residence
during this period.

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"Qualified
property" means a the unit of a condominium, as defined in section 514B-3,
of which the qualified taxpayer is an owner-occupant.

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"Qualified
taxpayer" means a taxpayer liable for payment of the real property
insurance premium of a qualified property.
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SECTION
2.
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New statutory material is
underscored.

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SECTION 3.
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This Act, upon its approval, shall apply to
taxable years beginning after December 31, 2024.

INTRODUCED BY:

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Report Title:

Income
Tax; Condominiums; Real Property Insurance Premiums; Tax Credit

Description:

Establishes
a refundable income tax credit to offset the increase in real property
insurance premiums for certain properties.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.