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HB 2546

RELATING TO TAX CREDIT FOR RESEARCH ACTIVITIES.

2026 Regular Session Introduced by Daisy Hartsfield and 9 co-sponsors

HB 2546 establishes a Hawaii tax credit for businesses conducting research activities to incentivize private sector innovation and economic diversification.

Conference Committee Meeting will reconvene on Friday, 05-01-26 at 11:30AM in Conference Room 411.
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Bill Summary · HB 2546

Legislative bill overview

HB 2546 proposes to establish or modify a tax credit in Hawaii for businesses engaged in research activities. The bill was introduced in January 2026 and has been referred to the Economic and Community Development (ECD) and Finance (FIN) committees for review. Specific details about the credit's scope, percentage rate, and eligibility requirements are not provided in the available information.

Why is this important

Tax credits for research activities are intended to incentivize private sector innovation and investment in R&D within the state, potentially boosting competitiveness in high-tech industries and creating skilled jobs. Hawaii's economic diversification beyond tourism depends partly on attracting and retaining knowledge-based businesses. The structure and generosity of such a credit directly affect both state tax revenue and the competitive advantage offered to researchers and companies.

Potential points of contention

  • Cost to state budget: Research tax credits reduce state revenue; policymakers will debate whether the economic benefits justify the fiscal impact and whether safeguards exist to prevent abuse or excessive corporate windfalls.
  • Definition and scope of "research activities": Disagreement may arise over which types of R&D qualify—basic science, applied research, product development—and whether the credit applies broadly or targets specific sectors.
  • Equity and access concerns: Questions about whether the credit primarily benefits large corporations versus small businesses and startups, and whether it advances or hinders Hawaii's workforce development goals.

Compiled from official sources — confirm details with the bill’s official record.

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