HI HB559

Extends the sunset date of Hawaii's income tax credit for qualified research activities from December 31, 2010 to December 31, 2016, allowing five additional years of the credit eligibility.

Clarifies that the federal tax provisions in Internal Revenue Code section 41 as enacted on December 31, 2011 remain in effect for calculating the state income tax credit for expenses incurred after December 31, 2012.

Redefines "qualified high technology business" to mean any business employing or owning capital or property in Hawaii that performs qualified research, replacing the previous reference to section 235-110.9.

Requires businesses claiming the credit to file annual surveys with the Department of Taxation by June 30 each year, reporting qualified expenditures, revenue and expense data, employment information, and patent filings; failure to file results in a $2,000 monthly fine.

Mandates the Department of Business, Economic Development, and Tourism to analyze tax credit data and report to the Legislature by December 21 each year on credit effectiveness, including job creation, taxes paid, and industry sector information.