RELATING TO THE HAWAII TECHNOLOGY DEVELOPMENT CORPORATION.

HB1011

HOUSE OF REPRESENTATIVES

H.B. NO.

1011

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE HAWAII TECHNOLOGY DEVELOPMENT CORPORATION.

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

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SECTION 1.
�
Section
206M-15, Hawaii Revised Statutes, is amended by amending subsection (b) to read
as follows:

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"(b)
�

The development corporation may provide grants to any business in Hawaii
that:

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(1)
�
Receives
a federal small business innovation research phase I or II award or contract
from any participating federal agency, up to fifty per cent of the amount of
the federal award or contract;

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(2)
�
Receives
a federal small business technology transfer program award or contract from any
participating federal agency, up to fifty per cent of the amount of
�
the federal award or contract;

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(3)
�
Receives
a federal small business innovation research phase III or small business
technology transfer program phase III award or contract, up to fifty per cent
of the amount of the award or contract funded by private sector of government
sources outside of the program; or

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(4)
�
Applies
for a small business innovation research federal grant or a small business
technology transfer program federal grant, in an amount not to exceed [
$3,000,
]

$6,000,

subject to
the availability of funds."

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SECTION 2.
�
Section 206M-15.1, Hawaii Revised Statutes, is
amended by amending subsection (a) to read as follows:

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"(a)
�

There is established the manufacturing development program, through
which the development corporation may provide grants to any business in Hawaii
that is a manufacturer in the State and requires assistance for any of the
following items:

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(1)
�
Purchasing
of manufacturing equipment;

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(2)
�
Training
of employees on the use of
new or existing
manufacturing equipment;

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(3)
�
Improving
existing energy efficiency manufacturing equipment or the purchase of improved
energy efficiency equipment in the manufacturing process; [
or
]

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(4)
�
Purchasing
of renewable energy technology systems, as defined in section 235-12.5,
including photovoltaic, for the purpose of reducing manufacturing energy costs;
provided that any renewable energy technology system purchased by a business
that receives a grant pursuant to this paragraph shall not be eligible for the
tax credit under section 235-12.5 to install or place that system in service;
or

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[
(4)
]

(5)
�

Studying or planning the implementation of a new manufacturing facility;

provided
that no grant shall exceed twenty per cent of the cost of any of the above
items, and no company shall receive a grant exceeding $100,000 in any given
year."

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SECTION 3.
�

Section 235�12.5, Hawaii Revised Statutes, is
�
amended by amending subsection (i) to read as
follows:

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"
(i)
�
No taxpayer shall be allowed a credit under
this section for [
the
]
:

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(1)
�
The

portion of the renewable energy technology system required by section 196-6.5
that is installed and placed in service on any newly constructed single‑family
residential property authorized by a building permit issued on or after January
1, 2010[
.
]
; or

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(2)
�
The
installation or placing in service of any portion of a renewable energy
technology system purchased in whole or in part with a grant received under the
manufacturing development program pursuant to section 206M-15.1.
"

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SECTION 4.
�
Statutory material to be repealed is bracketed
and stricken.
�
New statutory material is
underscored.

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SECTION 5.
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This Act shall take effect upon its approval.

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INTRODUCED BY:

_____________________________

BY REQUEST

Report Title:

Hawaii Technology Development Corporation; Small Business
Innovation Research Grant Program; Small Business Technology Transfer Grant
Program; Manufacturing Development Grant Program

Description:

Increases the cap for awards to assist businesses applying
for the Small Business Innovation Research Grant Program and the Small Business
Technology Transfer Grant Program of the Hawaii Technology Development
Corporation.
�
Adds purchasing of
renewable energy systems as an eligible expense and clarifies that training on
both new and existing manufacturing equipment is an eligible expense for the
Manufacturing Development Grant Program.
�

Clarifies that no tax credit is available for renewable energy systems purchased
with a grant received under the Manufacturing Development Grant Program.

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