THE SENATE	S.B. NO.	676
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE CAPITAL INFRASTRUCTURE TAX CREDIT.

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

     SECTION 1.  Section 235-17.5, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

     "(b)  For the purpose of this section:

     "Base investment" means the amount of money invested by an investor.

     "Capital infrastructure costs" means capital expenditures, as used in section 263 of the Internal Revenue Code and the regulations promulgated thereunder[; provided that the], or capital expenditures [are] for real property and fixtures that are paid or incurred in connection with the displaced tenant's move of the tenant's current active trade or business to the tenant's new location; provided [further] that the capital infrastructure costs shall not include amounts for which another credit is claimed[.] under this chapter.

     "Net income tax liability" means income tax liability reduced by all other credits allowed under this chapter.

     "Qualified infrastructure tenant" means a business:

     (1)  That currently owns capital or property or maintains an office, operations, or facilities at the former Kapalama military reservation site;

     (2)  Whose principal business is maritime, and waterfront dependent, and is included under the State's plan to relocate the business to piers twenty-four through twenty-eight within Honolulu harbor; and

     (3)  Will be displaced and relocated by the State pursuant to the Kapalama container terminal project.

     (c)  The amount of the tax credit shall be equal to [fifty] 50 per cent of the capital infrastructure costs paid or incurred by the qualified infrastructure tenant during the taxable year up to a maximum of [$2,500,000] $5,000,000 in [capital infrastructure costs] tax credits per qualified infrastructure tenant in any taxable year, provided that the qualified infrastructure tenant shall notify the taxpayer claiming the credit under subsection (a) of the amount of capital infrastructure costs which may be claimed.  If the capital infrastructure costs paid or incurred by the qualified infrastructure tenant result in a tax credit in excess of $5,000,000 in any taxable year, the excess capital infrastructure costs shall be applied to subsequent tax years for computation of credit."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2015, and shall apply to taxable years beginning after December 31, 2014.

INTRODUCED BY:

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Report Title:

Capital Infrastructure Tax Credit; Kapalama Container Terminal Project; Displaced Tenants

Description:

Increases the maximum amount of capital infrastructure tax credits that may be issued to a qualified infrastructure tenant in any taxable year.  Allows any capital infrastructure tax credit in excess of the maximum amount to be applied to subsequent tax years.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.