HI HB355

Reenacts three high technology tax credits that expired on December 31, 2010: the technology infrastructure renovation tax credit, high technology business investment tax credit, and tax credit for research activities.

Technology infrastructure renovation tax credit allows a 4% credit on renovation costs for commercial buildings with technology-enabled infrastructure (telecommunications, security systems, environmental systems, backup power), available through December 31, 2015.

High technology business investment tax credit provides declining credits over five years (35% year one, 25% year two, 20% year three, 10% years four-five) with maximum annual caps ranging from $700,000 to $200,000, with recapture provisions if business criteria are not maintained.

Tax credit for research activities allows qualified high technology businesses to claim credits based on federal Internal Revenue Code section 41 for qualified research expenses conducted in Hawaii, with excess credits refundable in amounts of $1 or more, available through December 31, 2015.

All three credits apply to taxable years beginning after December 31, 2010, and are subject to department of taxation certification requirements and fee assessments.