HI SB2497

Repeals the provision that exempted research activities tax credits from Internal Revenue Code base amount limitations, requiring credits to comply with federal base amount rules.

Narrows the definition of "qualified high technology business" to small businesses (no more than 500 employees) that conduct over 50% of activities in qualified research and are registered to do business in Hawaii.

Extends the sunset date for the research activities tax credit from December 31, 2024 to December 31, 2029.

Changes the effective date for Part II provisions from December 31, 2024 to January 1, 2030, aligning with the extended sunset date.

Applies to taxable years beginning after December 31, 2023.