HB 2716 Summary

• Establishes an ocean sciences research tax credit for small businesses subject to Hawaii income tax, deductible from net income tax liability.

• Tax credit equals the actual cost of investments made into qualified entities conducting research and development in ocean sciences (NAICS code 541715).

• Qualified entities are those with principal purpose of ocean sciences R&D; small businesses are defined as those with fewer than 100 employees and an office located in Hawaii.

• Annual credit cap per qualified entity and all related special purpose entities and partners cannot exceed a specified amount (amount left blank in bill text), with excess credits carried forward to subsequent years until December 31, 2025.

• Credit expires after December 31, 2025, and applies to taxable years beginning after January 1, 2050; taxpayers must report eligible costs and qualified entities to the Department of Taxation within 90 days of calendar year-end or face penalties up to $25,000.