HI HB475

Establishes a temporary manufacture and export tax credit allowing taxpayers to deduct up to 15% of domestic production gross receipts from exports outside Hawaii from their net income tax liability.

Credit requires taxpayer compliance with conditions including current taxation under chapter 237, compliance with commerce and consumer affairs laws, no outstanding tax liability, and at least 50% of operating and manufacturing costs sourced from within Hawaii.

Applies only to new export businesses that were not generating income through export sales before the effective date of the Act.

Excess credits exceeding annual tax liability may be carried forward to subsequent years until exhausted, and claims must be filed within 12 months after the close of the taxable year.

Applies to taxable years beginning after December 31, 2011 through December 31, 2016, with an effective date of July 1, 2112.