HI SB3049

Establishes a 10 percent income tax credit for hotel construction or renovation costs incurred by taxpayers subject to Hawaii income tax and transient accommodations tax between July 1, 2012 and July 1, 2017.

Credit applies to qualified hotel facilities (hotels, hotel-condominiums, and time share facilities) located in Hawaii and excludes costs for which another credit was already claimed.

Excess credits exceeding annual income tax liability may be carried forward to subsequent years until exhausted, with all claims required to be filed within 12 months of the taxable year end.

Property basis for depreciation must be reduced by the credit amount, or alternatively the taxpayer may treat the credit as taxable income for the year claimed.

Tax credit applies to taxable years beginning after December 31, 2011 and ending after December 31, 2017, with taxpayers required to comply with all applicable federal, state, and county laws to qualify.