State Program
Hawaii Tax Credit for Research Activities
A refundable credit for qualified high technology businesses, subject to an annual statewide cap and certification.
Program Overview
Hawaii's research credit is available to qualified high technology businesses and is refundable, subject to applicable requirements and limitations. Claimants must obtain certification from the Hawaii Department of Business, Economic Development and Tourism, submit an annual survey, and have their qualified research expenses verified. The program operates under an aggregate annual cap, and claims may be reduced pro rata if total certified claims exceed the cap in a given year.
Eligibility
- Qualified high technology businesses conducting qualifying research activities in Hawaii may qualify.
- More than half of the business's activities must consist of qualified research conducted in Hawaii.
- Businesses must obtain the required annual certification.
- Businesses must file the required annual survey by the applicable statutory deadline.
- Qualified research expenses must meet the applicable Hawaii requirements and verification procedures.
Benefits
- Provides a refundable credit that may be paid as a cash refund, subject to applicable requirements and the annual statewide cap.
- The credit is based on the applicable federal research credit rules.
- Qualifying research expenses must be attributable to research activities conducted in Hawaii.
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