HI HB1702

Establishes a capital infrastructure tax credit equal to 50% of capital infrastructure costs paid by qualified infrastructure tenants, capped at $2,500,000 per taxable year.

Applies to businesses currently operating at the former Kapalama military reservation site whose principal business is maritime and waterfront dependent, and will be displaced by the Kapalama container terminal project.

Allows taxpayers to claim the credit against net income tax liability, with any excess credit carried forward to subsequent years until exhausted; claims must be filed within 12 months following the close of the taxable year.

Requires recapture of 100% of the total tax credit claimed in the preceding five taxable years if the qualified infrastructure tenant fails to continue its line of business or sells/disposes of its interest within three years.

Applies to taxable years beginning after December 31, 2013 and expires after December 31, 2019; takes effect July 1, 2014.