HB 2080 - Manufacturing Tax Credit

• Establishes a temporary income tax credit equal to 20% of qualified manufacturing costs, with a maximum credit of $200,000 per taxpayer and minimum qualified costs of $50,000 per year.

• Applies to taxpayers who have operated in Hawaii and manufactured tangible personal property in the state for at least one year prior to claiming the credit.

• Qualified manufacturing costs include equipment, buildings, and employee training expenses; excludes electricity production costs and costs for which another credit is claimed.

• Department of Business, Economic Development, and Tourism must verify and certify qualified manufacturing costs; taxpayers must file certification with tax returns to claim the credit.

• Appropriates $250,000 for fiscal year 2016-2017 to DBEDT for credit certification; credit applies to taxable years beginning after December 31, 2020, and the entire provision repeals January 1, 2029.