HI HB1597

Establishes a temporary tax credit for historic businesses operating in Hawaii, allowing a credit of up to 4% of gross receipts or $10,000, whichever is less, against net income tax liability.

Eligible entities include domestic corporations, professional corporations, limited liability companies, nonprofit corporations, business trusts, estates, partnerships, limited liability partnerships, and Hawaii-domiciled trusts that are subject to Hawaii's general excise tax.

Requires qualifying businesses to have operated for at least 25 years in the state, have historical significance, incur at least 50% of operating costs from Hawaii sources, maintain compliance with state laws, and have no outstanding tax liabilities.

Allows excess tax credits to be carried forward to subsequent years until exhausted, with claims required to be filed within 12 months following the close of the taxable year.

Tax credit applies to taxable years beginning after December 31, 2011, but expires after December 31, 2016; takes effect July 1, 2011.