HI HB339

Increases the Hawaii state income tax credit for research activities to 125% (one and one-quarter times) of the allowable federal tax credit under Internal Revenue Code Section 41 for tax years beginning after December 31, 2018.

Applies the federal tax credit calculation methodology as it existed on December 31, 2011, irrespective of any subsequent amendments to federal law.

Requires qualified high technology businesses to claim the corresponding federal research tax credit under Section 41 of the Internal Revenue Code in order to claim the Hawaii state credit.

Removes the December 31, 2019 sunset date on the research activities tax credit provision, extending the credit indefinitely (with an apparent drafting error leaving the new expiration year blank).

Takes effect December 31, 2112, and applies to all qualified research activities expenses incurred for taxable years beginning after December 31, 2018.