Bill > HB1176

This bill establishes the Hawaii Economic Diversification Grant Program under the Hawaii Technology Development Corporation to provide grants to small high-technology businesses conducting qualified research activities within the state. The program allows eligible businesses to receive a grant equal to the federal tax credit for research activities, with several key provisions: businesses must claim a corresponding federal tax credit, submit annual certified statements and surveys about their research activities, and operate in specific high-tech industry sectors such as biotechnology, software development, aerospace, artificial intelligence, and healthcare technologies. The grant is limited to an aggregate of $10,000,000 annually, distributed on a first-come, first-served basis. Qualified businesses are defined as small businesses (500 employees or fewer) conducting more than 50% of their activities in qualified research in Hawaii. The Department of Business, Economic Development, and Tourism will manage the program, verify research activities, maintain records, and submit annual reports to the legislature detailing the program's economic impact, including job creation, research expenditures, and industry sector information. The bill appropriates funding for fiscal years 2025-2026 and 2026-2027 and is designed to support and incentivize high-technology research and development in Hawaii.

Budget and Finance, Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1176&year=2026