Report Title:

High Technology Business Investment Tax Credit; Qualified Research

 

Description:

Clarifies the definition of "qualified research" with respect to the high technology business investment tax credit.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

552

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

relating to THE high technology business investment tax credit.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  Section 235-110.9, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

     "(g)  As used in this section:

     "Investment tax credit allocation ratio" means, with respect to a taxpayer that has made an investment in a qualified high technology business, the ratio of:

     (1)  The amount of the credit under this section that is, or is to be, received by or allocated to the taxpayer over the life of the investment, as a result of the investment; to

     (2)  The amount of the investment in the qualified high technology business.

     "Qualified high technology business" means a business, employing or owning capital or property, or maintaining an office, in this State; provided that:

     (1)  More than fifty per cent of its total business activities are qualified research; and provided further that the business conducts more than seventy-five per cent of its qualified research in this State; or

     (2)  More than seventy-five per cent of its gross income is derived from qualified research; and provided further that this income is received from:

         (A)  Products sold from, manufactured in, or produced in this State; or

         (B)  Services performed in this State.

     "Qualified research" [means] has the same meaning as that term is defined in section 235-7.3."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval and shall apply to taxable years beginning after December 31, 2008.

 

INTRODUCED BY:

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