HI SB740

Creates a location efficiency tax credit allowing qualified taxpayers to deduct credits from state income tax liability for projects in areas meeting affordability or transit standards.

Grants taxpayers a tax credit equal to 10 percent of new employee withheld taxes under section 235-61, capped at the taxpayer's annual state income tax liability and non-refundable.

Defines "location efficiency" as projects maximizing existing infrastructure investments while providing nearby affordable workforce housing (costing no more than 35% of median employee salary) or accessible mass transit within one mile.

Requires taxpayers to submit location efficiency reports to the Hawaii Housing Finance and Development Corporation and annually report the number of new employees and withheld taxes.

Requires the corporation to submit annual reports to the legislature on allowed credits and its findings, and sunsets the credit on January 1, 2017.