REPORT TITLE:
High Technology Investment


DESCRIPTION:
Gives financial institutions a franchise tax credit for loans or
investments made to high technology businesses.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           203
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO HIGH-TECHNOLOGY INVESTMENT. 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 241, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "�241-    High-technology business investment; income tax
 
 5 credit.  (a)  There shall be allowed to each taxpayer subject to
 
 6 the tax imposed by this chapter a high-technology business
 
 7 investment tax credit which shall be deductible from the
 
 8 taxpayer's net tax liability, if any, imposed by this chapter for
 
 9 the taxable year in which the credit is properly claimed.  The
 
10 amount of the tax credit shall be:
 
11      (1)      per cent of income for $            but not less
 
12           than $           ;
 
13      (2)      per cent of income for $            but not less
 
14           than $           ;
 
15      (3)      per cent of income for $            but not less
 
16           than $           ;
 
17      (4)      per cent of income for $            but not less
 
18           than $           ; or
 
19      (5)      per cent of income for $            but not less
 

 
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                                     S.B. NO.           203
                                                        
                                                        

 
 1           than $           ;
 
 2 that is invested in or loaned to high-technology businesses
 
 3 during the taxable year and where the high-technology business
 
 4 uses the money loaned or invested in Hawaii.
 
 5      (b)  Interest or return rates on any loans to, or from
 
 6 investments in, high-technology businesses by financial
 
 7 institutions claiming this tax credit shall not exceed    per
 
 8 cent.
 
 9      (c)  Application for the high-technology business investment
 
10 tax credit shall be on forms provided by the department of
 
11 taxation.
 
12      If the high-technology business investment tax credit
 
13 allowed under subsection (a) exceeds the taxpayer's net income
 
14 tax liability, the excess credit over liability shall be refunded
 
15 to the taxpayer; provided that no refunds or payment on account
 
16 of the tax credit allowed by this section shall be made for
 
17 amounts less than $1.
 
18      All claims for tax credits under this section, including any
 
19 amended claims, must be filed on or before the end of the twelfth
 
20 month following the close of the taxable year for which the
 
21 credits may be claimed.  Failure to comply with the foregoing
 
22 provision shall constitute a waiver of the right to claim the
 
23 credit.
 

 
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                                     S.B. NO.           203
                                                        
                                                        

 
 1      (d)  As used in this section "high-technology" means
 
 2 emerging industries which are technology-intensive including
 
 3 electronics, telecommunications, computer software development,
 
 4 or biotechnology."
 
 5      SECTION 2.  New statutory material is underscored.
 
 6      SECTION 3.  This Act shall take effect on January 1, 2000,
 
 7 so that this Act shall apply to the entire net income received in
 
 8 the calendar year preceding January 1, 2000, and for calendar
 
 9 years thereafter.  In the case of a taxpayer operating on a
 
10 fiscal year basis, this Act shall apply to the entire net income
 
11 received in which January 1, 2000, occurs and for all fiscal
 
12 years thereafter.
 
13 
 
14                           INTRODUCED BY:  _______________________