HI HB1704

Amends the research activities tax credit under Hawaii Revised Statutes Section 235-110.91 to allow credits based on all qualified research expenses for the taxable year, eliminating the requirement to compare expenses against a base amount from previous years.

Freezes the application of federal Internal Revenue Code Section 41 provisions to those in effect as of December 31, 2011, for purposes of determining the state income tax credit, preventing future federal amendments from affecting Hawaii's credit calculation.

Appropriates funds for fiscal year 2014-2015 to establish one full-time compliance specialist position in the Department of Taxation to handle certification and administration of the research activities tax credit.

Applies to taxable years beginning after December 31, 2013, with an effective date of July 1, 2030.