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

(b)  The amount of the credit shall be four percent of the renovation costs incurred during the taxable year for eachcommercial building located in Hawaii.

(c)  In the case of a partnership, Scorporation, estate, trust, or any developer of a commercial building, the taxcredit allowable is for renovation costs incurred by the entity for the taxableyear.  The cost upon which the tax credit is computed shall be determined atthe entity level.  Distribution and share of credit shall be determinedpursuant 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 theInternal Revenue Code, no tax credit shall be allowed for that portion of therenovation cost for which the deduction is taken.

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

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

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

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

(i)  As used in this section:

"Net income tax liability" meansincome tax liability reduced by all other credits allowed under this chapter.

"Renovation costs" means costsincurred after December 31, 2000, to plan, design, install, construct, andpurchase technology-enabled infrastructure equipment to provide a commercialbuilding with technology-enabled infrastructure.

"Technology-enabled infrastructure"means:

(1)  High speed telecommunications systems thatprovide Internet access, direct satellite communications access, andvideoconferencing facilities;

(2)  Physical security systems that identify andverify 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 lifesafety systems; and

(4)  Backup and emergency electric power systems.

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