HI SB2293

Extends the tax credit for research activities from December 31, 2010 to December 31, 2011, providing a one-year extension for qualified research and development expenses.

Establishes a high technology research and development task force to develop legislative initiatives to improve the existing tax credit or establish alternative incentives.

Committee analysis shows the tax credit generates approximately $14,400,000 in state tax revenue from companies claiming $13,400,000 in credits, indicating the credit produces more revenue than its cost.

Hawaii's 20 percent research and development tax credit is competitive with other jurisdictions, including Quebec Province which offers tax credits up to 72.5 percent.

Committee recommends passage based on the need to attract and sustain Hawaii's science and technology sector as a critical part of the state's economy.