HI HB1068

Amends Hawaii's income tax credit for qualified research activities to allow credit for all qualified research expenses incurred in the taxable year, rather than only expenses exceeding amounts from previous years.

Removes the requirement that credits be calculated based on the "base amount" or increase over prior year expenses, enabling small research and development companies to claim the full credit regardless of historical spending levels.

Applies to taxable years beginning after December 31, 2015, with an effective date of July 1, 2015.

Intended to help small research and development companies bridge funding gaps between federal early-stage research grants and product development stages, allowing them to focus resources on commercialization.

Aims to support science, technology, engineering, and mathematics job creation in Hawaii by making the tax credit more accessible to early-stage and currently unprofitable research companies.