HI SB401

Establishes a refundable income tax credit for qualified cigar producers that can be deducted from net income tax liability, with the credit amount calculated as a percentage of qualifying costs incurred during the taxable year.

Allows taxpayers to assign all or part of the tax credit to other assignees on an irrevocable basis, with assignments requiring department of taxation forms and documentation.

Requires taxpayers to have filed income tax returns in Hawaii for at least five consecutive years immediately prior to claiming the credit.

Provides that excess credits over tax liability shall be refunded to the taxpayer, with a minimum refund threshold of $1, and requires all credit claims to be filed within 12 months after the close of the taxable year.

Defines "qualifying cigar producer" as a taxpayer meeting the five-year filing requirement who produces cigars in the State for sale, with "cigars" defined pursuant to existing Hawaii tax law.