HI HB800

Reinstates the research activity tax credit for individual and corporate taxpayers, modifying it to base the credit amount on in-house wages paid for qualified research performed within Hawaii rather than all qualified research expenses.

Defines "in-house qualified services wages" as wages paid to employees for qualified services performed within the State, excluding wages incurred but not actually paid and contract research expenses.

Establishes the credit as twenty percent of the difference between in-house qualified services wages paid in the current taxable year and the previous taxable year (with prior year wages treated as $0 if the taxpayer had no presence in the State).

Allows excess tax credits to be carried over to subsequent taxable years until exhausted, but eliminates the previous refundability of credits under $1.

Applies to taxable years beginning after December 31, 2010, and before December 31, 2015, with an effective date retroactive to December 31, 2010.