HB2546 • 2026

RELATING TO TAX CREDIT FOR RESEARCH ACTIVITIES.

Taxes Technology

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: NAKAMURA, HARTSFIELD, ILAGAN, KEOHOKAPU-LEE LOY, KITAGAWA, KUSCH, MIYAKE, MORIKAWA, PERRUSO, TEMPLO
Last action: 2026-05-01
Official status: Conference committee meeting to reconvene on 05-01-26 5:40 PM; Conference Room 309.
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

RELATING TO TAX CREDIT FOR RESEARCH ACTIVITIES.

What This Bill Does

RELATING TO TAX CREDIT FOR RESEARCH ACTIVITIES.
DBEDT; Tax Credit; Research Activities; Qualified High Technology Businesses; Annual Cap; Tax Credit Distribution; Certification Amends the tax credit for research activities by: allowing qualifying taxpayers to claim the credit for all qualified research expenses without regard to the amount of expenses for previous years; amending from March 31 to March 1 the deadline for qualified high technology businesses to submit to the Department of Business, Economic development, and Tourism written, certified statements identifying qualified expenditures and the tax amount of tax credits claimed in the previous taxable year; for any taxable year the annual aggregate cap is reached, requiring the credit to be divided between all qualified high technology businesses in proportion to the amount of qualified research expenses claimed; and requiring DBEDT to establish an annual application period and notify each qualified high technology business applicant of the credit amount certified.
Applies to costs incurred beginning after 12/31/2025.
Repeals the credit on 1/1/2029.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: HB2546 HD1 HOUSE OF REPRESENTATIVES H.B.

HB2546 HD1 HOUSE OF REPRESENTATIVES H.B.
NO.
2546 THIRTY-THIRD LEGISLATURE, 2026 H.D.
1 STATE OF HAWAII A BILL FOR AN ACT RELATING TO TAX CREDIT FOR RESEARCH ACTIVITIES .

HD2

Hawaii published version HD2

Plain English: HB2546 HD2 HOUSE OF REPRESENTATIVES H.B.

HB2546 HD2 HOUSE OF REPRESENTATIVES H.B.
NO.
2546 THIRTY-THIRD LEGISLATURE, 2026 H.D.
2 STATE OF HAWAII A BILL FOR AN ACT RELATING TO TAX CREDIT FOR RESEARCH ACTIVITIES .

SD1

Hawaii published version SD1

Plain English: HB2546 SD1 HOUSE OF REPRESENTATIVES H.B.

HB2546 SD1 HOUSE OF REPRESENTATIVES H.B.
NO.
2546 THIRTY-THIRD LEGISLATURE, 2026 H.D.
2 STATE OF HAWAII S.D.

SD2

Hawaii published version SD2

Plain English: HB2546 SD2 HOUSE OF REPRESENTATIVES H.B.

HB2546 SD2 HOUSE OF REPRESENTATIVES H.B.
NO.
2546 THIRTY-THIRD LEGISLATURE, 2026 H.D.
2 STATE OF HAWAII S.D.

Bill History

2026-05-01 S
Conference committee meeting to reconvene on 05-01-26 5:40 PM; Conference Room 309.
2026-05-01 S
Conference committee meeting to reconvene on 05-01-26 5:37 PM; Conference Room 329.
2026-05-01 H
Conference Committee Meeting will reconvene on Friday, 05-01-26 at 4:31PM in Conference Room 411.
2026-05-01 H
Conference Committee Meeting will reconvene on Friday, 05-01-26 at 11:30AM in Conference Room 411.
2026-04-30 H
Conference Committee Meeting will reconvene on Friday 05-01-26 8:01AM in conference room 411.
2026-04-28 H
Bill scheduled for Conference Committee Meeting on Thursday, 04-30-26 8:30AM in conference room 411.
2026-04-23 H
Received notice of Senate conferees (Sen. Com. No. 725).
2026-04-22 S
Senate Conferees Appointed: DeCoite Chair; Wakai Co-Chair; Fevella.
2026-04-20 S
Received notice of appointment of House conferees (Hse. Com. No. 786).
2026-04-20 H
House Conferees Appointed: Ilagan, Hussey Co-Chairs; Tam, Gedeon.
2026-04-17 S
Received notice of disagreement (Hse. Com. No. 780).
2026-04-16 H
House disagrees with Senate amendment (s).
2026-04-14 H
Returned from Senate (Sen. Com. No. 701) in amended form (SD 2).
2026-04-14 S
Report adopted; Passed Third Reading, as amended (SD 2). Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House.
2026-04-09 S
48 Hrs. Notice 04-14-26.
2026-04-09 S
Reported from WAM (Stand. Com. Rep. No. 3686) with recommendation of passage on Third Reading, as amended (SD 2).
2026-04-06 S
The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 12 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Richards, Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Lee, C..
2026-04-01 S
The committee(s) on WAM deferred the measure until 04-06-26 10:31AM; Conference Room 211 & Videoconference.
2026-03-30 S
Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.
2026-03-30 S
The committee(s) on WAM will hold a public decision making on 04-01-26 10:03AM; Conference Room 211 & Videoconference.
2026-03-30 S
Reported from EDT (Stand. Com. Rep. No. 3238) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
2026-03-24 S
The committee(s) on EDT recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in EDT were as follows: 4 Aye(s): Senator(s) DeCoite, Wakai, Kim, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fukunaga.
2026-03-20 S
The committee(s) on EDT has scheduled a public hearing on 03-24-26 1:04PM; Conference Room 229 & Videoconference.
2026-03-12 S
Referred to EDT, WAM.
2026-03-12 S
Passed First Reading.
2026-03-12 S
Received from House (Hse. Com. No. 435).
2026-03-10 H
Passed Third Reading as amended in HD 2 with Representative(s) Iwamoto voting aye with reservations; none voting no (0) and Representative(s) Pierick excused (1). Transmitted to Senate.
2026-03-06 H
Forty-eight (48) hours notice Tuesday, 03-10-26.
2026-03-06 H
Reported from FIN (Stand. Com. Rep. No. 1111-26) as amended in HD 2, recommending passage on Third Reading.
2026-03-02 H
The committee on FIN recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 16 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Perruso, Templo, Yamashita, Alcos, Gedeon, Reyes Oda; Ayes with reservations: none; Noes: none; and Excused: none.
2026-02-27 H
Bill scheduled to be heard by FIN on Monday, 03-02-26 2:00PM in House conference room 308 VIA VIDEOCONFERENCE.
2026-02-19 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and none excused (0).
2026-02-19 H
Reported from ECD (Stand. Com. Rep. No. 511-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
2026-02-13 H
The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Ilagan, Hussey, Holt, Tam, Templo, Yamashita, Gedeon; Ayes with reservations: none; Noes: none; and Excused: none.
2026-02-10 H
Bill scheduled to be heard by ECD on Friday, 02-13-26 8:30AM in House conference room 423 VIA VIDEOCONFERENCE.
2026-02-02 H
Referred to ECD, FIN, referral sheet 6
2026-01-28 H
Introduced and Pass First Reading.

Official Summary Text

RELATING TO TAX CREDIT FOR RESEARCH ACTIVITIES.
DBEDT; Tax Credit; Research Activities; Qualified High Technology Businesses; Annual Cap; Tax Credit Distribution; Certification
Amends the tax credit for research activities by: allowing qualifying taxpayers to claim the credit for all qualified research expenses without regard to the amount of expenses for previous years; amending from March 31 to March 1 the deadline for qualified high technology businesses to submit to the Department of Business, Economic development, and Tourism written, certified statements identifying qualified expenditures and the tax amount of tax credits claimed in the previous taxable year; for any taxable year the annual aggregate cap is reached, requiring the credit to be divided between all qualified high technology businesses in proportion to the amount of qualified research expenses claimed; and requiring DBEDT to establish an annual application period and notify each qualified high technology business applicant of the credit amount certified. Applies to costs incurred beginning after 12/31/2025. Repeals the credit on 1/1/2029. Effective 7/1/3050. (SD2)

Current Bill Text

Read the full stored bill text

HB2546

HOUSE OF REPRESENTATIVES

H.B. NO.

2546

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO TAX CREDIT FOR RESEARCH ACTIVITIES
.

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

����
SECTION
1.
�
The legislature finds that Hawaii
must diversify its economy by encouraging and promoting research and
development activities.
�
These efforts
will help attract and retain technology companies in the State and provide
high-paying jobs that are necessary for residents to thrive in Hawaii.

����
The
legislature further finds that Hawaii has an opportunity to create careers that
allow its young people to build their futures at home.
�
When local graduates can find work that
matches their education and ambition, they are more likely to remain in the
State, raise families, start businesses, and strengthen the communities that
raised them.
�
Research and development
jobs offer these meaningful careers rooted in imagination and skill.

����
The
legislature also finds that while tourism remains vital to Hawaii's economy, the
State can and should build additional engines of growth.
�
An economy grounded in research and
innovation creates value from ideas � drawing on the creativity, education, and
talent of its people.
�
This approach
increases economic resilience by ensuring that when one sector faces
disruption, as tourism did during the COVID-19 pandemic and following the
Lahaina wildfire, other industries can help sustain families and communities.

����
The
legislature additionally finds that economic research supports this approach.
�
The 2018 Nobel Prize in Economic Sciences was
awarded for research demonstrating that sustained economic growth comes from
investing in people and ideas.
�
The 2025
Nobel Prize in Economic Sciences further showed how innovation drives long-term
growth by creating new technologies, products, and production methods that
replace old ones.
�
Economies that support
research and development grow from within, generating prosperity that compounds
over generations.

����
The
legislature further finds that Hawaii's research activities tax credit has
proven its value, as demand consistently exceeds available funding.
�
For the past three years, the $5,000,000
annual cap has been reached almost immediately upon opening applications,
demonstrating strong interest from companies ready to invest in Hawaii.
�
Additionally, removing the federal
base-amount calculation will encourage companies to expand their research
activities year after year without being penalized for prior investments and
eliminates the uncertainty for businesses planning multi-year research
investments in Hawaii.

����
The
legislature also finds that strengthening this credit will position Hawaii to
compete more effectively for innovation-driven companies.
�
Other states like Florida, Maryland, and
Michigan have made significant commitments to research incentives, with annual
caps ranging from $9,000,000 to $100,000,000.
�

Increasing Hawaii's cap and simplifying the credit will send a clear
signal that the State believes in its people and invests in their potential.

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The
purpose of this Act is to strengthen the research activities tax credit and
invest in Hawaii's future by:

����
(1)
�
Allowing taxpayers to claim credits for all
qualified research expenses without reduction for prior-year spending; and

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(2)
�
Increasing the annual statewide cap from
$5,000,000 to $15,000,000 to meet demonstrated demand and support an economy in
which Hawaii's families can thrive.

����
SECTION
2
.
�
Section 235-110.91, Hawaii Revised Statutes,
is amended as follows:

����
1.
�
By amending subsection (b) to read:

����
"(b)
�
All references to Internal Revenue Code
sections within sections 41 and 280C(c) of the Internal Revenue Code shall be
operative for purposes of this section[
.
]
; provided that references
to the base amount in section 41 of the Internal Revenue Code shall not apply,
and a credit for all qualified research expenses may be taken without regard to
the amount of expenses for previous years.
"

����
2.
�
By amending subsection (f) to read:

����
"(f)
�
If in any taxable year the annual amount of
certified credits reaches [
$5,000,000
]
$15,000,000
in the
aggregate, the department of business, economic development, and tourism shall
immediately discontinue certifying credits and notify the department of
taxation.
�
In no instance shall the
department of business, economic development, and tourism certify a total
amount of credits exceeding [
$5,000,000
]
$15,000,000
per taxable
year.
�
To comply with this restriction,
the department of business, economic development, and tourism shall certify
credits on a [
first come, first served
]
first-come, first-served

basis.

����
The
department of taxation shall not allow the aggregate amount of credits claimed
to exceed that amount per taxable year."

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SECTION 3.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

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SECTION 4.
�
This Act, upon its approval, shall apply to
taxable years beginning after December 31, 2025.

INTRODUCED BY:

_____________________________

Report Title:

Tax
Credit; Research Activities

Description:

Restores
the provision that makes references to the Internal Revenue Code's base-amount
requirement inapplicable to the Research Activities Tax Credit, allowing all
qualified research expenses to be claimed without regard to prior-year
expenses.
�
Increases the annual cap for
the Research Activities Tax Credit.

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