HI HB133

Establishes an income tax credit for taxpayers subject to Hawaii income tax and transient accommodations tax who incur construction or renovation costs for hotel facilities located in Hawaii.

Credit amount equals a percentage of construction or renovation costs incurred during the taxable year for new hotel construction or renovation, excluding costs for which another credit was claimed in the same year.

For partnerships, S corporations, estates, and trusts, the credit is determined at the entity level with distribution and share of credit following the same method as the capital goods excise tax credit.

Credit is available for taxable years beginning after December 31, 2015, and expires for taxable years beginning after December 31, 2021.

Defines "hotel facility" as establishments providing transient lodging with customary services (restaurants, room service, laundry, etc.), excluding condominiums and time share units, and reduces depreciation basis or treats credit as taxable income depending on taxpayer election.