H.B. 990 - Tax Credit for Research Activities

• Consolidates certification and reporting requirements for the research activities tax credit by moving survey obligations from annual filings to the initial certification application submitted to the Department of Business, Economic Development, and Tourism.

• Caps individual taxpayer eligibility at $1,000,000 per taxable year in tax credits, including credits claimed by all related entities.

• Changes the aggregate annual cap from being determined by taxable year to calendar year at $5,000,000, with priority given to first-come, first-served applications based on the date a complete application is received, and carryover priority for applicants denied solely due to the aggregate cap being reached.

• Requires submission of detailed information at certification including industry sector, revenue and expense data, Hawaii employment and wage information, intellectual property filings, and new companies spun out to commercialize intellectual property.

• Requires the Department of Business, Economic Development, and Tourism to report aggregate statistics and effectiveness data to the legislature by September 1 annually, with the tax credit provision expiring after December 31, 2024.