HI HB553

Establishes a "Growing Economy Tax Credit" allowing qualified taxpayers to deduct taxes withheld for new employees from their net income tax liability, with credits capped at annual tax liability and carryover allowed for up to five subsequent years.

Requires applicants to propose projects involving at least $5,000,000 in capital improvements and 25 new full-time employees, or $1,000,000 and 5 employees for companies with fewer than 100 employees, and must demonstrate the project would not occur in Hawaii without the tax credit.

Limits eligible businesses to those engaged in manufacturing, processing, assembling, warehousing, exporting, research and development, or agricultural processing, excluding retail, food service, health, and professional services.

Requires applicants to enter into an agreement with the Hawaii Housing Finance and Development Corporation, which must verify compliance with project requirements, employment targets, and capital investment commitments, with authority to suspend credits for noncompliance.

Takes effect after December 31, 2012 and automatically repeals on January 1, 2017.