Department Of Taxation Announcement No. 2004-15 - Hawaii Department Of Taxation printable pdf download

KURT KAWAFUCHI

LINDA LINGLE

DIRECTOR OF TAXATION

GOVERNOR

MARIE C. LADERTA

JAMES R. AIONA, JR.

DEPUTY DIRECTOR

LT. GOVERNOR

STATE OF HAWAII

DEPARTMENT OF TAXATION

P.O. BOX 259

HONOLULU, HAWAII 96809

PHONE NO: (808) 587-1510

FAX NO: (808) 587-1560

August 11, 2004

DEPARTMENT OF TAXATION ANNOUNCEMENT NO. 2004-15

RE:

Act 215, Session Laws of Hawaii 2004, Relating to Capital Investments (Act 215)

On July 13, 2004, the Governor signed H.B. No. 2396, H.D. 2, S.D. 2, C.D. 1 into law as

Act 215. Act 215 amends various provisions of Act 221, Session Laws of Hawaii 2001, relating

to high technology investment tax credits, extends the sunset date for certain tax incentives to

December 31, 2010, and establishes a State Private Investment Fund.

Section 1 of Act 215 establishes the State Private Investment Fund (Fund), providing a

new mechanism to fund capital investments, which can be accomplished at little cost to the State

through the authorization of contingent tax credits. Under this program, the legislature

authorizes a fixed amount of investment tax credits to be used on a standby basis. The Fund will

be administered by the Hawaii Strategic Development Corporation (Corporation). The

Corporation will have various powers to pursue its mission of mobilizing equity and near-equity

capital for investments that will result in significant potential to diversify and stabilize the state

economy.

Section 2 of Act 215 states that the purpose of Part II is to improve the currently available

tax incentives developed for the high technology industry.

Section 3 of Act 215 establishes a new "Tax Administration Special Fund" and authorizes

the Department of Taxation (Department) to charge fees for providing comfort letters and

certifying credit amounts for the high technology business investment tax credit and research

activities tax credit.

Sections 4 and 5 of Act 215 amend Hawaii Revised Statutes (HRS) sections 211F-3 and

211F-4, respectively, concerning the Hawaii Strategic Development Corporation.

Section 6 of Act 215 amends HRS section 235-7.3 to change the definition of software

development to read as follows: "The development and design of computer software for ultimate

sale, lease, license or to be otherwise marketed, for economic consideration. With respect to the

software's development and design, the business shall have substantial control and retain

substantial rights to the resulting intellectual property."

Department Of Taxation Announcement No. 2004-15 - Hawaii Department Of Taxation