HI SB972

Establishes a ship repair industry tax credit equal to 30 percent of costs paid or incurred by a qualified entity to design and construct a purpose-built floating drydock for use by the United States Navy at Pearl Harbor.

Limits the tax credit to a maximum of $6,000,000 per qualified entity per taxable year, with credits claimable only from January 1, 2022 through December 31, 2026, and only after the drydock is completed and placed into service.

Allows qualified entities to form special purpose entities to raise investor capital and claim credits on behalf of the entity, with excess credits carried forward to subsequent years until December 31, 2026.

Permits unused tax credits to offset net income tax liability in subsequent years until exhausted, with claims requiring filing within 12 months of the close of the taxable year or the right is waived.

Repeals the Capital Infrastructure Tax Credit (§235-17.5) and takes effect January 1, 2020, applying to taxable years beginning after December 31, 2021.