S.B. 3035 Summary

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

• Tax credit amount equals a percentage (unspecified in bill text) of at-risk investments made to qualified entities conducting research and development in ocean sciences.

• Qualified entities are small businesses (50 or fewer employees, less than $5,000,000 annual revenue) licensed in Hawaii and conducting research and development in ocean sciences as defined by North American Industry Classification System code 541715.

• Credit claims are limited to a maximum annual amount per qualified entity (amount unspecified in bill text), with unused credits carrying forward until exhausted, but no credits allowed after December 31, 2025.

• Taxpayers claiming credits must report eligible costs and qualifying entity information to the Department of Taxation within 90 days of the calendar year end, subject to a penalty of $5,000 per month (up to $25,000) for non-compliance.