Monday, July 13, 2020
Hawai'i Free Press

Current Articles | Archives

Wednesday, August 21, 2013
UHERO: Are All Tax Credits Created Equal?
By UHERO @ 6:06 AM :: 2551 Views :: Tax Credits

UHERO 101.8: Are All Tax Credits Created Equal?

by Kimberly Burnett and James Jones, UHERO, August 16, 2013

The intention of well-designed tax credit programs is to incentivize individuals or organizations to invest or participate in a commodity or service that will increase the greater good (by, for example, stimulating the economy and/or reducing environmental damage), but that they might not invest in without this additional benefit. As many states do, the State of Hawaii offers a dizzying number and variety of tax credits. A quick rundown from last year’s Schedule CR and X, to give you an idea:

1. Refundable Food/Excise Tax Credit

2. Credit for Low-Income Household Renters

3. Credit for Child and Dependent Care Expenses

4. Credit for Child Passenger Restraint

5. Enterprise Zone Tax Credit

6. Low-Income Housing Tax Credit

7. Credit for Employment of Vocational Rehabilitation Referrals

8. High Technology Business Investment Tax Credit

9. Credit for School Repair and Maintenance

10. Renewable Energy Technologies Income Tax Credit

11. Capital Goods Excise Tax Credit

12. Fuel Tax Credit for Commercial Fishers

13. Ethanol Facility Tax Credit

14. Motion Picture, Digital Media, and Film Production Income Tax Credit

15. Important Agricultural Land Qualified Agricultural Cost Tax Credit

16. Carryover of the Energy Conservation Tax Credit

17. Carryover of the Individual Development Account Contribution Tax Credit

18. Carryover of the Technology Infrastructure Renovation Tax Credit

19. Carryover of the Hotel Construction and Remodeling Tax Credit

20. Carryover of the Residential Construction and Remodeling Tax Credit

Recently, the Rhode Island legislature adopted a law requiring that state tax credits undergo a process of regular and rigorous evaluations. This law will require RI to assess the benefits and costs of tax credits, deductions, and exemptions. The evaluations are opportunities to examine the success of tax credit programs, for example whether the incentives affected individual and business decisions, the cost of the program to taxpayers, and the overall level of benefit brought in by the tax credit. These types of assessments will give decision makers information regarding possible changes to the program, if the costs were found to be greater than the benefits, for example.

In Hawaii there are also a number of personal income tax deductions that could be examined, including (but not limited to) the exceptional tree deduction, where individuals may deduct up to $3,000 per “exceptional tree” for qualified expenditures made to maintain the tree on private property (Ordinary trees do not qualify: the tree must be designated as an exceptional tree per Chapter 58 of the Hawaii Revised Statutes). Periodic assessments of each state tax credit and deduction may give decision makers a clearer understanding of the most useful programs. UHERO has done research on some of Hawaii's most generous tax credits, high tech and solar photovoltaic. Eliminating or redesigning inefficient programs and using the best policies as guides for future legislation could move the state towards a more efficient, fair tax system and improve economic conditions across the state.



TEXT "follow HawaiiFreePress" to 40404

Register to Vote


808 Silent Majority

808 State Update AM940


ACA Signups Hawaii



Alliance Defending Freedom

Aloha Life Advocates

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

American Mothers of Hawaii



Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Audit The Rail

Ballotpedia Hawaii

Better Hawaii 

Blaisdell Memorial Project

Broken Trust 

Build More Hawaiian Homes Working Group

CAFR Hawaii

Castaway Conservative

Children's Alliance Hawaii

Children's Rights Institute

Christian Homeschoolers of Hawaii

Citizens for Recall

Cliff Slater's Second Opinion

Coffee Break

CSIS Pacific Forum

DAR Hawaii

DVids Hawaii

E Hana Kakou Kelii Akina

E Māua Ola i Moku o Keawe

Farmers For Choice Hawaii


Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Get Off Your Butts!

God, Freedom, America

Grassroot Institute

Hawaii Aganst Assisted Suicide

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crime Victims' Rights

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defending Marriage

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Firearm Community

Hawaii Fishermen's Alliance

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii Meth Project

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Right to Life -- Big Island

Hawaii Right to Life -- Oahu

Hawaii Shield Law Coalition

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HI Coalition Against Legalized Gambling



Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Homeless Crisis

Honolulu Navy League

Honolulu Traffic

Horns of Jericho Blog

House Minority Blog

House Republican Caucus YouTube


Hump Day Report

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes


Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii


National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Hawaiian

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii


OHA Lies

Opt Out Today

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons 

Pro-GMO Hawaii


Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SIFE Remington

SIFE W. Oahu 

Sink the Jones Act

Smart About Marijuana--Hawaii

St Marianne Cope

State Budget Solutions Hawaii

State Policy Network

Statehood for Guam

Tax Foundation of Hawaii

The Harriet Tubman Agenda

The Long War Journal

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Truth About Trade & Technology - Hawaii

UCC Truths

Union Members Know Your Rights

US Tax Foundation Hawaii Info

Valor in the Pacific

VAREP Honolulu

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii