Report Title:

Tax Credit; High Technology; Department of Defense

 

Description:

Provides a tax credit to Department of Defense high technology contractors that hire workers who are residents of Hawaii.  (HB477 HD1)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

477

TWENTY-FIFTH LEGISLATURE, 2009

H.D. 1

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 be appropriately designated and to read as follows:

     "§235-     United States Department of Defense contractors tax credit; local hire.  (a)  There shall be allowed to each qualified taxpayer, a United States Department of Defense contractors 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 tax credit is properly claimed.

     (b)  As used in this section, "qualified taxpayer" means a United States Department of Defense contractor who:

     (1)  Is a qualified high technology business;

     (2)  Is conducting qualified research;

(3)  Has hired a person who has resided in the state for at least twelve consecutive months previous to the hiring; and

(4)  Is in compliance with all applicable federal, state, and county statutes, ordinances, rules, and regulations.

For the purposes of this section, "qualified high technology business" and "qualified research" have the same meaning as defined in section 235-110.9.

     (c)  The tax credit shall be equal to $     per person hired by the qualified taxpayer in the year in which the tax credit is properly claimed.

     (d)  If the tax credit under this section exceeds the taxpayer's net income tax liability, the amount of the excess may be used as a credit against the taxpayer's income tax liability in subsequent years until exhausted; provided that no refund or payment on account of the tax credit allowed by this section shall be made for amounts less than $1.

     (e)  Every claim, including amended claims, for the tax credit under this section shall be filed on or before the end of the twelfth month following the close of the taxable year for which the tax credit may be claimed.  Failure to meet the filing requirements of this subsection shall constitute a waiver of the right to claim the tax credit.

     (f)  The director of taxation may:

 

(1)  Prepare forms as necessary to claim a tax credit under this section;

(2)  Require proof of the claim for the tax credit; and

(3)  Adopt rules pursuant to chapter 91 to effectuate the purposes of this section."

     SECTION 2.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2112, and shall apply to taxable years beginning after December 31, 2008.