Bill Text: HI SB2497 | 2024 | Regular Session | Amended
Bill Title: Relating To Taxation.
Spectrum: Moderate Partisan Bill (Democrat 6-1)
Status: (Enrolled) 2024-05-03 - Enrolled to Governor. [SB2497 Detail]
Download: Hawaii-2024-SB2497-Amended.html
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THE SENATE |
S.B. NO. |
2497 |
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THIRTY-SECOND LEGISLATURE, 2024 |
S.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 235-110.91, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (f) to read:
"(f)
If in any taxable year the annual amount of certified credits reaches [$5,000,000]
in the
aggregate, the department of business, economic development, and tourism shall
immediately discontinue certifying credits and notify the department of
taxation. In no instance shall the
department of business, economic development, and tourism certify a total
amount of credits exceeding [$5,000,000]
per taxable year. To comply with this
restriction, the department of business, economic development, and tourism
shall certify credits on a first come, first served basis.
The department of taxation shall not allow the aggregate amount of credits claimed to exceed that amount per taxable year."
2. By amending subsections (n) and (o) to read:
"(n)
This section shall not apply to taxable years beginning after December
31, [2024.] 2029.
(o) As used in this section:
"Qualified high technology
business" [shall have the same meaning as in section 235-7.3(c).] means
a for-profit corporation, limited liability company, partnership, limited
partnership, sole proprietorship, or other legal entity that:
(1) Is registered to do business in the State;
(2) Is independently owned and operated;
(3) Employs
fewer than five hundred full-time or part-time employees in the State; and
(4) Conducts more than fifty per cent of its activities in qualified research.
"Qualified research" shall have the same meaning as in section 41(d) of the Internal Revenue Code.
"Qualified research expenses" shall have the same meaning as in section 41(b) of the Internal Revenue Code; provided that it shall not include research expenses incurred outside of the State."
SECTION 2. Act 261, Session Laws of Hawaii 2019, is amended by amending section 5 to read as follows:
"SECTION 5. This Act shall take effect upon its approval; provided that:
(1) Section 2 shall apply to taxable years beginning after December 31, 2019; and
(2) Part
II shall take effect on [December 31, 2024.] January 1, 2030."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on January 1, 2060, and shall apply to taxable years beginning after December 31, 2023; provided that, on December 31, 2029, section 1 of this Act shall be repealed and section 235-110.91, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day prior to the effective date of this Act.
Report Title:
Tax Credit; Research Activities
Description:
Amends the tax credit for research activities by: (1) increasing the total amount of certified credits to an unspecified amount; (2) extending the sunset date of the credit to 12/31/29; and (3) amending the definition of qualified high technology businesses that are eligible to claim the credit. Effective 1/1/2060. (SD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
