HI HB1454

Establishes a temporary income tax credit for taxpayers who incur qualified manufacturing expenses in Hawaii, applicable to taxable years beginning after December 31, 2015, and repealing January 1, 2023.

Credit amount is calculated as a percentage of qualified manufacturing costs (percentage amount left blank in bill), with a per-taxpayer cap (amount left blank in bill).

Qualified manufacturing costs include equipment purchases for in-state manufacturing of tangible personal property and reasonable employee training costs, excluding electricity production costs and professional services.

Excess credits over net income tax liability may be carried forward to subsequent years until exhausted, with claims required to be filed within 12 months of the taxable year end.

Department of Business, Economic Development, and Tourism must certify qualified manufacturing costs and credit amounts for each taxpayer; Department of Taxation retains authority to audit and adjust certifications.