HI HB1454

Establishes a temporary income tax credit for taxpayers who incur qualified manufacturing expenses in Hawaii, effective for taxable years beginning after December 31, 2015.

Credit is calculated as a percentage of qualified manufacturing costs with a maximum cap per taxpayer, and applies only to costs eligible for depreciation under Internal Revenue Code Section 167.

Qualified manufacturing costs include equipment purchases for in-state manufacturing of tangible personal property and employee training costs, but exclude electricity production-related costs.

Unused credits may be carried forward to subsequent years until exhausted, and claims must be filed within twelve months after the close of the taxable year.

The credit sunsets and is repealed on January 1, 2023; the Department of Business, Economic Development, and Tourism certifies qualified costs while the Department of Taxation administers the credit.