HI HB343

Establishes a 25% income tax credit for qualified small craft beer producers on manufacturing expenses, capped at $100,000 per taxpayer per year and $1,000,000 total statewide per year.

Requires qualified taxpayers to hold a valid class 1 manufacturer license for malt beverages, class 14 brewpub license, or class 18 small craft producer pub license, and produce 100% of beer products in Hawaii.

Taxpayers must submit certified statements to the Department of Business, Economic Development, and Tourism by March 31 annually, identifying qualified expenses and claimed credits.

Unused tax credits may be carried forward to subsequent years until exhausted, and excess credits over tax liability are not refundable.

Credit applies to taxable years beginning after December 31, 2019 and ending on or before December 31, 2023; appropriates $1,000,000 for fiscal year 2019-2020 to monitor and verify claims.