HI HB2551

Establishes a temporary income tax credit for Hawaii taxpayers who incur expenses for manufacturing tangible personal property in the State, effective for taxable years beginning after December 31, 2016 and repealing January 1, 2023.

Allows a tax credit equal to a percentage of qualified manufacturing costs (percentage amount not specified in bill text), with a per-taxpayer cap (amount not specified in bill text).

Qualified manufacturing costs include equipment purchases for in-state manufacturing placed in service within one year of purchase and reasonable training costs for manufacturing employees, excluding electricity production costs.

Credits exceeding a taxpayer's net income tax liability for the year may be carried forward to subsequent years until exhausted, with claims due within 12 months of the taxable year's close.

Requires the Department of Business, Economic Development, and Tourism to maintain records and certify qualified manufacturing costs, with the Director of Taxation retaining audit authority; the Director of Taxation shall prepare necessary claim forms and adopt implementing rules.