Hawaii Tax Incentives

Business Investment Tax Credit

Through December 31, 2010, taxpayers making a high technology business investment are eligible for a tax credit the year in which the investment is made and may be carried over for up to four additional years. A qualified high technology business is defined as one in which more than 50% of the activities are qualified research (75% of which is conducted in Hawaii) and in which more than 75% of the income (i.e. income from products sold from, manufactured or produced in Hawaii or from services performed in Hawaii) is derived from qualified research. Qualified research includes research that is related to non-fossil fuel energy-related technology. The tax credit is equal to a percentage of the investment made, up to the following maximums:

Tax credits cannot exceed the amount of the investment or exceed 80% of the taxpayer's income tax liability in the year in which the credit is claimed.

(Reference Senate Bill 199, 2009, and Hawaii Revised Statutes 235-7.3 and 235-110.9)

Point of Contact

Hawaii State Department of Taxation
Phone (800) 222-3229
http://www.state.hi.us/tax/tax.html

Ethanol Production Incentive

An income tax credit is available for qualifying ethanol production facilities equal to 30% of nameplate capacity between 500,000 and 15 million gallons per year. The facility must produce at least 75% of its nameplate capacity to be eligible to receive the tax credit each year, and the tax credit may be taken for up to eight years. The credit is only available to the first 40 million gallons of ethanol produced per year. Qualifying ethanol production facilities must be in operation prior to January 1, 2017. (Reference Hawaii Revised Statutes 235-110.3)