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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1784 |
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THIRTY-SECOND LEGISLATURE, 2024 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
Leveraging modern and up-to-date technology to support critical operation systems is a significant benefit of data center operations, where one of the core missions is to stay at the forefront of technological advancements, enabling reliable data access 99.999 per cent of the time.
In mid-2023, dozens of
Hawaii businesses in the health care, airline, and finance fields, as well as
state agencies, were operationally disrupted due to a local data outage,
frustrating customers and residents.
Over the last decade, Hawaii has adopted
various tax incentives to encourage the development of high-technology
businesses in the State. The focus on
high technology is commendable and recognized as a policy direction that will
yield greater investment from within and outside the State.
Accordingly, the purpose of this Act is to temporarily reinstate the technology infrastructure renovation tax credit and expand the definition of "technology-enabled infrastructure" to include data servers.
SECTION 2. Section 235-110.51, Hawaii Revised Statutes, is amended by amending subsections (h) and (i) to read as follows:
"(h) The tax credit allowed under this section
shall [not] be available for taxable years beginning after [December
31, 2010.] December 31, 2023, but shall not be available for taxable
years beginning after December 31, 2026.
(i) As used in this section:
"Data server" means a computer system designed and configured for the process, storage, retrieval, and management of electronic data and provide database management and access services to client computers on a computer network.
"Net income tax liability" means income tax liability reduced by all other credits allowed under this chapter.
"Renovation costs" means costs incurred after December 31, 2000, to plan, design, install, construct, and purchase technology-enabled infrastructure equipment to provide a commercial building with technology-enabled infrastructure.
"Technology-enabled infrastructure" means:
(1) Either:
[(1)] (A) High
speed telecommunications systems that provide [Internet] internet
access, direct satellite communications access, and videoconferencing
facilities; or
(B) Data servers;
(2) Physical security systems that identify and verify valid entry to secure spaces, detect invalid entry or entry attempts, and monitor activity in these spaces;
(3) Environmental systems to include heating, ventilation, air conditioning, fire detection and suppression, and other life safety systems; and
(4) Backup and emergency electric power systems."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 3000, and shall apply to taxable years beginning after December 31, 2023.
Report Title:
Technology Infrastructure Renovation Tax Credit; Reinstatement; Technology-Enabled Infrastructure; Data Servers
Description:
For taxable years beginning after 12/31/2023, temporarily reinstates the Technology Infrastructure Renovation Tax Credit and expands the definition of "technology-enabled infrastructure" to include data servers. Sunsets the tax credit for taxable years beginning after 12/31/2026. Effective 7/1/3000. (HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.