summary
Introduced
01/28/2026
01/28/2026
In Committee
02/19/2026
02/19/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Session
Bill Summary
Amends the tax credit for research activities by: allowing taxpayers to claim all qualified research expenses without regard to prior-year expenses; increasing the annual cap; requiring the tax credit to be divided on a proportional basis if the annual statewide cap is reached; and requiring the Department of Business, Economic Development, and Tourism to establish an annual application period and notify each qualified high technology business applicant of the credit amount certified. Applies retroactive to taxable years beginning after 12/31/2024. Effective 7/1/3000. (HD1)
AI Summary
This bill aims to strengthen Hawaii's research activities tax credit to encourage economic diversification and job growth, particularly in high-technology sectors. Key provisions include allowing businesses to claim credits for all qualified research expenses without being limited by previous years' spending, increasing the annual statewide cap for these credits from $5 million to $15 million, and establishing a proportional distribution of credits if the new cap is reached. The Department of Business, Economic Development, and Tourism will now be responsible for setting an annual application period and notifying businesses of their certified credit amounts, with the changes applying retroactively to taxable years beginning after December 31, 2024, and taking effect on July 1, 3000.
Committee Categories
Budget and Finance, Business and Industry
Sponsors (10)
Daisy Hartsfield (D)*,
Greggor Ilagan (D)*,
Susan Keohokapu-Lee Loy (D)*,
Lisa Kitagawa (D)*,
Matthias Kusch (D)*,
Tyson Miyake (D)*,
Dee Morikawa (D)*,
Nadine Nakamura (D)*,
Amy Perruso (D)*,
Shirley Ann Templo (D)*,
Last Action
Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and none excused (0). (on 02/19/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=2546&year=2026 |
| BillText | https://www.capitol.hawaii.gov/sessions/session2026/bills/HB2546_HD1_.HTM |
| Committee Report HB2546_HD1_HSCR511-26_ | https://www.capitol.hawaii.gov/sessions/session2026/CommReports/HB2546_HD1_HSCR511-26_.pdf |
| HB2546_TESTIMONY_ECD_02-13-26_ | https://www.capitol.hawaii.gov/sessions/session2026/Testimony/HB2546_TESTIMONY_ECD_02-13-26_.PDF |
| BillText | https://www.capitol.hawaii.gov/sessions/session2026/bills/HB2546_.HTM |
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