HI HB559

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

Clarifies that federal tax provisions in Internal Revenue Code section 41 as enacted on December 31, 2011 shall apply to expenses incurred for qualified research activities after December 31, 2012.

Redefines "qualified high technology business" to mean any business employing or owning capital or property, or maintaining an office in Hawaii that performs qualified research, expanding from the previous narrower definition.

Removes existing certification requirements from the Department of Taxation and replaces them with new annual survey requirements for businesses claiming the credit, including reporting on industry sector, qualified expenditures, revenue, employment data, and intellectual property.

Requires the Department of Business, Economic Development, and Tourism to conduct economic impact analyses using collected data and report annually to the legislature on tax credits claimed, jobs created, industry sectors, and other factors measuring the effectiveness of the tax credit.