Bill Text: HI SB965 | 2019 | Regular Session | Introduced
Bill Title: Relating To Taxation.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Engrossed - Dead) 2019-03-22 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Quinlan, Yamane excused (2). [SB965 Detail]
Download: Hawaii-2019-SB965-Introduced.html
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THE SENATE |
S.B. NO. |
965 |
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THIRTIETH LEGISLATURE, 2019 |
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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 (a) to read:
"(a) Section 41 (with respect to the credit for
increasing research activities) and section 280C(c) (with respect to certain
expenses for which the credit for increasing research activities are allowable)
of the Internal Revenue Code shall be operative for the purposes of this
chapter as provided in this section; provided that the federal tax provisions
in section 41 of the Internal Revenue Code, as that section was enacted on
December 31, 2011, irrespective of any subsequent changes to section 41 of
the Internal Revenue Code, shall remain in effect for purposes of determining
the state income tax credit under this section; provided further that the
federal tax provisions in section 41 of the Internal Revenue Code, as enacted
on December 31, 2011, irrespective of any subsequent amendments to section 41
of the Internal Revenue Code, shall apply only to expenses incurred for
qualified research activities after December 31, 2012[.]; provided
further that, for tax years beginning after December 31, 2018, there shall be
allowed a Hawaii state income tax credit of one and one-quarter times any
credit as calculated under the federal tax provisions in section 41 of the
Internal Revenue Code as enacted on December 31, 2011."
2. By amending subsection (c) to read:
"(c) There shall be allowed to each qualified high
technology business subject to the tax imposed by this chapter an income tax
credit for qualified research activities equal to the credit for research activities
provided by section 41 of the Internal Revenue Code and as modified by this
section; provided that, in addition to any other requirements established in
this section, in order to qualify for the tax credit established in this
section, the qualified high technology business shall also claim a federal tax
credit for the same qualified research activities under section 41 of the
Internal Revenue Code, as enacted on December 31, 2011, irrespective of any
subsequent amendments to section 41 of the Internal Revenue Code. The credit 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[.]; provided
further that, for tax years beginning after December 31, 2018, there shall
be allowed a Hawaii state income tax credit of one and one-quarter times any
credit as calculated under the federal tax provisions in section 41 of the
Internal Revenue Code as enacted on December 31, 2011."
3. By amending subsection (n) to read:
"(n) This section shall not apply to taxable years
beginning after December 31, [2019.] 20 ."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2018.
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INTRODUCED BY: |
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Report Title:
Taxation; State Tax Credit for Research Activities; Increase; Extension
Description:
Increases the state tax credit for research activities to one and one-quarter times the allowable federal tax credit. Amends qualifying tax years.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
