Bill > SB338

This bill temporarily reinstates the Technology Infrastructure Renovation Tax Credit for taxable years beginning after December 31, 2025, and extending through December 31, 2027. The legislation expands the definition of "technology-enabled infrastructure" to include data servers, which are computer systems designed for processing, storing, and managing electronic data. The tax credit allows businesses to claim four percent of renovation costs incurred in Hawaii, with specific provisions for partnerships and other entities. The bill aims to support high-technology businesses by providing tax incentives for upgrading and modernizing data infrastructure, particularly in response to recent data outages that disrupted operations in various sectors like healthcare, airlines, and finance. Additionally, the bill requires the Department of Taxation to submit a report on the tax credit to the legislature before the 2029 regular session, and it prevents taxpayers from claiming other tax credits during the specified period. The legislation reflects Hawaii's commitment to encouraging technological investment and improving the resilience of critical technology infrastructure.

Budget and Finance, Business and Industry, Labor and Employment

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=338&year=2026