Business Investment Tax Credit

Expired: 01/01/2011

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. A qualified high technology business is a business 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:

YearTax Credit (% of
investment made)
Maximum Value
of Credit
Year of Investment
1st Year Following Investment25% $500,000
2nd Year Following Investment20%$400,000
3rd Year Following Investment10%$200,000
4th Year Following Investment10%$200,000

Tax credits may not 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. Credits may be carried over for up to four additional years.

(Reference Hawaii Revised Statutes 235-7.3, 235-109.5, and 235-110.9)