HI HB188

Establishes a tax credit for corporations allowing them to deduct 100% of qualified costs for mentoring the first student in science, technology, engineering, and mathematics (STEM) programs, with a 20% reduction for each subsequent student up to five students per year.

Defines qualified costs as any expenses required for student participation in STEM programs, including internships and externships.

Covers STEM programs established under Act 111 (Session Laws of Hawaii 2007), Environmental and Spatial Technology Initiative programs, and state public school or college STEM-focused programs.

Allows unused tax credits exceeding a corporation's annual income tax liability to be carried forward to subsequent years until exhausted.

Requires all credit claims to be filed within 12 months following the close of the taxable year, with failure to comply constituting a waiver of the credit, effective for taxable years beginning after December 31, 2010.