HB1511 Summary

• Extends the income tax credit for qualified research activities conducted by qualified high technology businesses in Hawaii through December 31, 2015 (previously set to expire December 31, 2010).

• Establishes a new 10% income tax credit for qualified labor costs, defined as wages or salaries paid for the first 12 months of employment of full-time employees or part-time students who are Hawaii residents.

• Maintains the existing research activities credit based on Section 41 of the Internal Revenue Code, with modifications limiting qualified research and basic research to activities conducted within the State.

• Applies to taxable years beginning after December 31, 2010.