A BILL FOR AN ACT

RELATING TO TAXATION.

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

     SECTION 1.  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 be available for taxable years beginning after:

     (1)  December 31, 2000, but shall not be available for taxable years beginning after December 31, 2010[.]; and

     (2)  December 31, 2022, but shall not be available for taxable years beginning after December 31, 2025.

     (i)  As used in this section:

     "Data server" means a computer system used to hold large amounts 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:

          (A)  High speed telecommunications systems that provide 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 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on January 1, 2050, and shall apply to taxable years beginning after December 31, 2022.

Report Title:

Technology Infrastructure Renovation Tax Credit; Reinstatement; Data Servers

Description:

Temporarily reinstates the technology infrastructure renovation tax credit.  Expands the definition of "technology-enabled infrastructure" to include data servers.  Effective 1/1/2050.  (SD2)

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