HI HB806

Disallows deductions for out-of-state traveling expenses incurred in the pursuit of a trade or business, including transportation expenses between points in Hawaii and points outside the state.

Establishes a ceiling on deductions for employee remuneration at publicly held corporations of $129,660 for the taxable year beginning after December 31, 2010, and $143,748 for the taxable year beginning after December 31, 2011.

Applies to taxable years beginning after December 31, 2010, and automatically repeals on December 31, 2012.

Ceiling amounts are equivalent to the governor's salary levels for those respective years and are intended to generate additional tax revenue for public health, safety, and education services.

Modifies Hawaii's incorporation of Internal Revenue Code Section 162 regarding trade or business expenses.