HI SB575

Adds a new tax exemption excluding the first $50,000 of taxable income received by eligible businesses in taxable years beginning after December 31, 2010.

Eligible businesses include corporations incorporated in Hawaii under chapter 414, or pass-through entities that incur a specified percentage of operational expenses in Hawaii.

Pass-through entities qualifying for the exemption include professional corporations, general partnerships, limited partnerships, limited liability companies, and S corporations.

Applies to businesses formed and registered under Hawaii law in accordance with chapters 414, 415A, 425, 425E, 428, and the Internal Revenue Code section 1362(a).