HI HB593

Amends Hawaii Revised Statutes section 235-110.91 to allow calculation of the state tax credit for research activities based on all qualified research expenses for the taxable year, removing the requirement to reference base amounts from federal Internal Revenue Code section 41.

Maintains the use of federal tax provisions in Internal Revenue Code section 41 as enacted on December 31, 2011, for determining state income tax credits under this section, with applicability limited to expenses incurred after December 31, 2012.

Appropriates funds for fiscal years 2017-2018 and 2018-2019 to establish one full-time compliance specialist position (1.00 FTE) within the Department of Taxation to assist with certification and administration of the research activities tax credit.

Takes effect on July 1, 2038, and applies to taxable years beginning after December 31, 2016.