HI HB2863

Establishes a hiring incentive tax credit for businesses that hire employees laid off between October 31, 2011 and February 1, 2012, deductible from net income tax liability.

Credit equals two-thirds of Federal Insurance Contributions Act (FICA) taxes paid on newly-hired employees for positions filled between January 24 and May 31, 2012, and one-third of FICA taxes for positions filled between May 31, 2012 and January 1, 2013.

Eligible employees must have resided in Hawaii, been laid off for lack of funds or work, remained unemployed until hired into a permanent full-time position, and continuously employed for a minimum qualifying term (generally one year).

Requires eligible businesses to maintain employment levels from the hire date and prohibits layoffs of other employees during the qualifying term, with violations making the business ineligible for the credit for that employee.

Expires December 31, 2019; unused credits may be carried forward for up to five subsequent taxable years; businesses must maintain substantial state operations for two years after credit receipt or forfeit 50% of prior credits claimed.