HB 1851

HOUSE OF REPRESENTATIVES
H.B. NO.
1851
THIRTY-THIRD LEGISLATURE, 2026
H.D. 3
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
���� SECTION 1.� Chapter 235, Hawaii Revised Statutes, is
amended by adding a new section to part VI to be appropriately designated and
to read as follows:
���� "�235-   � Apprenticeship
program income tax credit.� (a)�
There shall be allowed to each taxpayer subject to the taxes imposed by
this chapter an apprenticeship program income tax credit that 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 tax credit shall be $4,800 or fifty per cent of the
qualified costs, whichever is less, incurred by the taxpayer for a qualified
apprenticeship program in the taxable year; provided that:
���� (1)� The total tax
credit claimed per qualified apprenticeship program shall not exceed
$  per taxable year;
and
���� (2)� The aggregate
amount of tax credits allowed under this section shall not exceed $
for all taxpayers in any taxable year; provided that any taxpayer who is not
eligible to claim the credit in a taxable year due to the $
cap having been exceeded for that taxable year shall be eligible to claim the
credit in the subsequent taxable year.
The
taxpayer may apply the credit for the same qualified apprenticeship program for
up to two consecutive taxable years.
���� (c)� If the tax credit under this section exceeds
the taxpayer's income tax liability, the excess of the credit over liability
may be used as a credit against the taxpayer's income tax liability in
subsequent years until exhausted.� 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.� Failure to comply with this provision shall
constitute a waiver of the right to claim the credit.
���� (d)� To qualify for the income tax credit, the
taxpayer shall be in compliance with all applicable federal, state, and county
statutes, ordinances, rules, and regulations.
���� (e)� Every taxpayer claiming a tax credit under
this section shall file with the department of taxation a written, certified
statement from the department of labor and industrial relations verifying that
the apprenticeship program is a qualified apprenticeship program and specifying
the amount of qualified costs incurred.
���� (f)� The director of taxation:
���� (1)� Shall prepare
any forms necessary to claim a credit under this section;
���� (2)� May require the
taxpayer to furnish information to ascertain the validity of the claim for
credit made under this section; and
���� (3)� May adopt rules
under chapter 91 necessary to effectuate the purposes of this section.
���� (g)�
No taxpayer that claims a credit under this section shall claim any
other credit for the same qualified costs under this chapter.
���� (h)� As used in this section:
���� "Qualified apprenticeship
program" means an apprenticeship program in the State that is registered
and approved by the department of labor and industrial relations.
���� "Qualified costs" means
the wages paid to each apprentice."
���� SECTION 2.� New statutory material is underscored.
���� SECTION 3.� This Act shall take effect on July 1, 3000;
provided that this Act:
���� (1)� Shall apply to taxable years beginning after
December 31, 2025; and
���� (2)� Shall be repealed on December 31, 2036.
Report Title:
Taxation;
Apprenticeship Program Income Tax Credit; Qualified Apprenticeship Program;
Qualified Costs
Description:
Establishes
an apprenticeship program income tax credit for certain qualified costs
incurred by a taxpayer for a qualified apprenticeship program.� Sunsets 12/31/2036.� Effective 7/1/3000.� (HD3)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.