Informing the Legislature that on July 1, 2024, the Governor signed the following bill into law: SB2497 SD2 HD1 CD1 (ACT 139).

This message from the Governor of Hawaii informs the Legislature that Act 139 was signed into law on July 1, 2024. The bill modifies state tax rules to allow small businesses, defined as those with 500 or fewer employees, to claim tax credits for qualified research expenses conducted within the state. Key provisions include extending the application of these tax incentives to taxable years beginning after December 31, 2023, and adjusting the effective date for certain parts of the act to January 1, 2030. The legislation specifically excludes research expenses incurred outside of Hawaii and clarifies how Internal Revenue Code sections apply to the state tax code.