HI HB133

Establishes an income tax credit for taxpayers subject to Hawaii income tax and transient accommodations tax who incur costs for hotel construction or renovation projects within the state.

Credit amount is calculated as a percentage of construction or renovation costs incurred during the taxable year, excluding costs for which another credit was already claimed.

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

For partnerships, S corporations, estates, and trusts, the credit is determined at the entity level with distributions matching the capital goods excise tax credit methodology.

Defines "hotel facility" as establishments providing transient lodging with customary services, excluding condominiums and time share units, and requires basis reduction or income recognition for depreciation purposes.