HI HB2170

Provides an income tax credit for construction costs incurred for new hotel facilities located in Hawaii for taxable years beginning after December 31, 2014, and ending on or before December 31, 2019.

Credit amount equals a percentage of construction costs incurred during the taxable year, with construction costs defined as expenses for plans, design, construction, and equipment for new hotels but excluding renovation or alteration of existing facilities.

Hotel facility must be subject to the transient accommodations tax, provide customary lodging services, and cannot be a condominium, unit, or time share property.

Excess credits over a taxpayer's income tax liability may be carried forward to subsequent years until exhausted, and all claims must be filed within twelve months following the close of the taxable year.

The Department of Business, Economic Development, and Tourism must maintain records, certify construction costs and credit amounts, and issue certificates to taxpayers; the Director of Taxation retains audit authority over certifications.