[§235-110.46]  Attractions and educationalfacilities tax credit; Ko Olina Resort and Marina; Makaha Resort.  (a) There shall be allowed to each qualified taxpayer subject to the taxes imposedby this chapter or chapter 237, 237D, 238, 239, 241, or 431, a tax credit[that] may be claimed for taxable years beginning after December 31, 2004, forqualified costs in the development of facilities for attractions andeducational purposes at Ko Olina Resort and Marina and at Makaha Resort.  Thetax credit shall be deductible from the taxpayer's net income tax liability, ifany, imposed by this chapter and, at the election of the taxpayer, from the taxliability imposed by chapters 237, 237D, 238, 239, 241, and 431.

(b)  The tax credit earned shall be equal to thequalified costs incurred from June 1, 2003, through May 31, 2009, up to amaximum of $75,000,000 of credits in the aggregate for all qualified taxpayersfor all years; provided that notwithstanding the amount of tax credits earnedin any year, a maximum of $7,500,000 of tax credits in the aggregate for allqualified taxpayers may be used in any one taxable year.  The credits over$7,500,000 shall be used as provided in subsection (d).  In the case of apartnership, limited liability company, S corporation, estate, trust, orassociation of apartment owners, the tax credit allowable is for qualifiedcosts incurred by the entity.  The costs upon which the tax credit is computedshall be determined at the entity level.

(c)  To qualify for the tax credit, a taxpayershall:

(1)  Have expended qualified costs on and bedeveloping a world-class aquarium and marine science and mammal researchfacility at Ko Olina Resort and Marina; and

(2)  Dedicate one-half of the net operating income ofthe world-class aquarium to the State, beginning on the first day of theseventeenth year following the year in which the attractions and educationalfacilities credit was first taken; or

(3)  Acquire or own the Makaha Resort, and lease orsell a portion of the Makaha Resort for use as training and educationalfacilities for a period of not less than six years to a taxpayer meeting therequirements of subsection (c)(1).

(d)  If the tax credit under this sectionexceeds $7,500,000 in the aggregate for all qualified taxpayers for any taxableyear or exceeds the taxpayer's tax liability under this chapter or chapters237, 237D, 238, 239, 241, and 431 for any year for which the credit is taken,the excess of the tax credit may be used as a credit against the taxpayer's taxliability for the taxes set forth in this section in subsequent years untilexhausted; provided that the taxpayer may continue to claim the credit providedin this section if the qualified costs are incurred before June 1, 2009,subject to the monetary ceilings in subsection (b).

(e)  Every claim, including amended claims, fora tax credit under this section shall be filed on or before the end of thetwelfth month following the close of the taxable year for which the credit maybe claimed.  Failure to comply with the foregoing provision shall constitute awaiver of the right to claim the credit.

(f)  If, at any time during the six-year periodin which tax credits are earned under this section, the costs incurred nolonger meet the definition of qualified costs, the credits claimed under thissection shall be recaptured.  The recapture shall be equal to one hundred percent of the total tax credits claimed under this section for the precedingtaxable year; provided that the amount of the credits recaptured shall apply onlyto those costs that no longer meet the definition of qualified costs.  Theamount of the recaptured tax credits determined under this subsection shall beadded to the taxpayer's tax liability for the taxable year in which therecapture occurs under this subsection.

(g)  If any credit is claimed under thissection, then no taxpayer shall claim a credit under any chapter identified inthis section for the same qualified costs for which a credit is claimed underthis section.

(h)  The director of taxation shall prepare anyforms that may be necessary to claim a credit under this section.  The directormay also require the taxpayer to furnish information to ascertain the validityof the claims for credits made under this section and may adopt rules necessaryto effectuate the purposes of this section pursuant to chapter 91.

Every qualified taxpayer, no later than March31 of each year in which qualified costs were expended in the previous taxableyear, shall submit a written, certified statement to the director of business,economic development, and tourism, in the form specified by the director ofbusiness, economic development, and tourism, identifying:

(1)  Qualified costs, if any, expended in the previoustaxable year;

(2)  The amount of tax credits claimed pursuant tothis section, if any, in the previous taxable year; and

(3)  The tax liability under this chapter and chapters237, 237D, 238, 239, 241, and 431 against which the tax credits are claimed.

Any other law to the contrary notwithstanding, a statementsubmitted under this subsection shall be a public document.

(i)  The department of business, economicdevelopment, and tourism shall maintain records of the names of taxpayerseligible for the credits and the total amount of qualified costs incurred fromJune 1, 2003, through May 31, 2009.  The department of business, economicdevelopment, and tourism shall verify all qualified costs and, upon eachdetermination, shall issue a certificate to the taxpayer certifying:

(1)  The amount of the qualified costs; and

(2)  The amount of tax credit that the taxpayer isallowed to use for the taxable year.

The department of business, economicdevelopment, and tourism shall certify no more than $7,500,000 in credits inthe aggregate for all taxpayers for each taxable year; provided that thedepartment may verify qualified costs of no more than $75,000,000 from June 1,2003, through May 31, 2009.  The taxpayer shall file the certificate with thetaxpayer's return with the department of taxation.

(j)  As used in this section:

"Ko Olina Resort and Marina" meansthe six hundred forty-two acres reclassified to urban district by Decision andOrder entered on September 12, 1985, in Docket A83-562, by the land usecommission.

"Makaha Resort" means the threehundred thirty-two acre property identified as tax map keys (1) 8-04-002parcels 51, 52, 53, 54, 55, and 67 and (1) 8-04-029-142.

"Qualified costs" means any costs forplans, design, and construction, costs for equipment that is permanentlyaffixed to a building or structure, and acquisition of facilities foreducational purposes, up to a total of $75,000,000 in the aggregate, incurredafter May 31, 2003, and before June 1, 2009, at either or both of:

(1)  Ko Olina Resort and Marina for the development offacilities for attractions and educational purposes, and for infrastructurewithin the Ko Olina Resort and Marina that is directly related to thosefacilities, including a world-class aquarium, marine science and mammalresearch facilities, international sports training complex, a travel industrymanagement intern campus, infrastructure for the transfer of ocean waters tothe aquarium or marine mammal facilities, or both, seawater air conditioning,and other educational facilities developed or operated in cooperation with theUniversity of Hawaii or other educational institutions; or

(2)  Makaha Resort for the development of a trainingand educational facility within a working resort and hotel;

provided that "qualified costs" shall notinclude land acquisition costs.

"Qualified taxpayer" means a personwho fulfills the requirements of subsection (c). [L 2003, c 100, §3]

 

Note

 

  Section applies to qualified costs incurred after May 31,2003.  L 2003, c 100, §6.