HI HB2656

Establishes a 20% income tax credit for qualified small craft beer producers on expenses incurred to manufacture beer in Hawaii, with a maximum credit of $50,000 per taxpayer per year.

Limits total tax credits statewide to $300,000 annually across all qualified taxpayers, with unused credits allowed to carry forward to subsequent years.

Requires qualified taxpayers to hold a Class 1 manufacturer license for malt beverages, Class 14 brewpub license, or Class 18 small craft producer pub license, and produce 100% of beer products in Hawaii.

Mandates Department of Business, Economic Development, and Tourism to verify qualified expenses, maintain taxpayer records, and issue certification certificates to be filed with tax returns by March 31 each year.

Tax credit applies to taxable years beginning after December 31, 2018 and expires after December 31, 2023; appropriates unspecified general revenues for fiscal year 2018-2019 to administer the credit program.