HI HB1147

Establishes a capital business improvements tax credit under Hawaii income tax law allowing taxpayers to deduct the cost of capital improvements from their net income tax liability.

Requires the Department of Business, Economic Development, and Tourism to approve a business plan submitted by the taxpayer before the credit can be claimed.

Tax credit only becomes effective after the taxpayer achieves 75 percent of the plan's objectives and the plan must include hiring at least five new full-time employees.

Allows excess tax credits that exceed a taxpayer's income tax liability to be carried forward until the liability is exhausted.

Tax credit claims must be filed within 12 months following the close of the taxable year, with failure to timely claim constituting a waiver of the right to the credit.