HI HB591

Expands the definition of "capital infrastructure costs" to include structures, machinery, equipment, and capital assets (in addition to real property and fixtures) for businesses displaced by the Kapalama container terminal project.

Sets a maximum tax credit cap of $2,500,000 per qualified infrastructure tenant per taxable year, with all partners and members of special purpose entities combined not to exceed this limit in any single year.

Allows excess capital infrastructure costs exceeding the annual cap to be carried forward to subsequent tax years until the costs are exhausted or December 31, 2019, whichever comes first.

Requires recapture of the tax credit if the qualified infrastructure tenant fails to continue its line of business within three years, disposes of its interest, or fails to relocate from the Kapalama site within ninety days of executing a Department of Transportation lease.

Requires taxpayers claiming the credit to submit to the Department of Taxation within ninety days of year-end the amount of eligible costs and the qualified infrastructure tenant incurring them, with a penalty of $5,000 per month (up to $25,000) for non-compliance.