HI HB451

Establishes a new state income tax credit for taxpayers holding qualified equity investments in community development entities, based on Internal Revenue Code section 45D.

Credit amount equals the applicable percentage of the original investment amount, with the percentage calculated according to federal IRC section 45D(a)(2).

Allows unused credits to carry forward to subsequent tax years until exhausted, with claims required within 12 months following the close of the taxable year.

Exempts new markets tax credit allocations among partners from the IRC section 704(b)(2) requirement that partnership allocations have substantial economic effect.

Applies to taxable years beginning after December 31, 2010.