§235-110.51  Technology infrastructure
renovation tax credit.  (a)  There shall be allowed to each taxpayer
subject to the taxes imposed by this chapter, an income tax credit which shall
be deductible from the taxpayer's net income tax liability, if any, imposed by
this chapter for the taxable year in which the credit is properly claimed.



(b)  The amount of the credit shall be four per
cent of the renovation costs incurred during the taxable year for each
commercial building located in Hawaii.



(c)  In the case of a partnership, S
corporation, estate, trust, or any developer of a commercial building, the tax
credit allowable is for renovation costs incurred by the entity for the taxable
year.  The cost upon which the tax credit is computed shall be determined at
the entity level.  Distribution and share of credit shall be determined
pursuant to section 235-110.7(a).



(d)  If a deduction is taken under section 179
(with respect to election to expense depreciable business assets) of the
Internal Revenue Code, no tax credit shall be allowed for that portion of the
renovation cost for which the deduction is taken.



(e)  The basis of eligible property for
depreciation or accelerated cost recovery system purposes for state income
taxes shall be reduced by the amount of credit allowable and claimed.  In the
alternative, the taxpayer shall treat the amount of the credit allowable and
claimed as a taxable income item for the taxable year in which it is properly
recognized under the method of accounting used to compute taxable income.



(f)  The credit allowed under this section
shall be claimed against the net income tax liability for the taxable year.



(g)  If the tax credit under this section
exceeds the taxpayer's income tax liability, the excess of credit over liability
may be carried forward until exhausted.



(h)  The tax credit allowed under this section
shall not be available for taxable years beginning after December 31, 2010.



(i)  As used in this section:



"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)  High speed telecommunications systems that
provide Internet access, direct satellite communications access, and
videoconferencing facilities;



(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.



(j)  No taxpayer that claims a credit under
this section shall claim any other credit under this chapter. [L 2001, c 221,
§2; am L 2004, c 215, §7]