HB 1193 Summary

• Caps individual qualified high technology businesses at $1,500,000 in annual research activity tax credits per taxable year, including related entities and commonly controlled business entities.

• Requires qualified high technology businesses to submit detailed annual certifications to the Department of Business, Economic Development, and Tourism (DBEDT) including industry sector, revenue/expense data, employment data, intellectual property filings, and spinoff companies.

• Increases the annual aggregate cap on research activity tax credits that DBEDT may certify from $5,000,000 to $15,000,000 per calendar year, with certification on a first-come, first-served basis based on complete application receipt date.

• Consolidates and streamlines reporting requirements by integrating the separate survey process into the certification submission, eliminating duplicate reporting obligations.

• Extends the sunset date for the research activity tax credit program from December 31, 2024 to December 31, 2029, and adds a requirement that businesses be registered to do business in Hawaii.