On July 9, 2013, Hawaii Governor Neil Abercrombie (D) signed bill SB 1349 , which reestablished the research and development tax credit for qualified research activities. The State credit tracks the federal credit for increasing research activities found at I.R.C. § 41, thus providing consistency between Federal and State standards. Taxpayers must be claiming the Federal credit to claim the Hawaii benefit, and the statute calls for a certification process overseen by the Hawaii Department of Taxation. Taxpayers must submit to the State, by March 31 of each year, a written certified statement providing the qualified research expenditures expended in the prior taxable year, and the amount of tax credits claimed. Additionally, SB 1349 is effective for taxable years beginning after December 31, 2010, and will sunset on December 31, 2019. Hawaii has joined a growing number of states in adopting and expanding incentive programs for in-state R&D activities.
Hawaii re-establishes State R&D Tax Credit
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