SB 338: DOTAX; Technology Infrastructure Renovation Tax Credit; Reinstatement; Technology-Enabled Infrastructure; Data Servers; Report
- Session Year: 2025-2026
- House: Senate
- Latest Version Date: 2025-03-20
Current Status:
Failed
(2025-12-08: Carried over to 2026 Regular Session.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
For taxable years beginning after 12/31/2025, temporarily reinstates the Technology Infrastructure Renovation Tax Credit and expands the definition of "technology-enabled infrastructure" to include data servers. Requires the Department of Taxation to submit a report to the Legislature. Effective 7/1/3000. (HD1)
For taxable years beginning after 12/31/2025, temporarily reinstates the Technology Infrastructure Renovation Tax Credit and expands the definition of "technology-enabled infrastructure" to include data servers. Requires the Department of Taxation to submit a report to the Legislature. Effective 7/1/2050. (SD2)
For taxable years beginning after 12/31/2025, temporarily reinstates the Technology Infrastructure Renovation Tax Credit and expands the definition of "technology-enabled infrastructure" to include data servers. Requires the Department of Taxation to submit a report to the Legislature. Effective 7/1/2050. (SD1)
For taxable years beginning after December 31, 2025, temporarily reinstates the Technology Infrastructure Renovation Tax Credit and expands the definition of "technology-enabled infrastructure" to include data servers.
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THE SENATE |
S.B. NO. |
338 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 1 |
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A BILL FOR AN ACT
RELATING TO TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that upgrading and modernizing equipment necessary for data storage will improve resilience against physical damage caused by weather-related events and cybersecurity threats and ensure the continued, uninterrupted provision of services to Hawaii businesses, state government and satellite agencies, and residents.
Leveraging modern and up-to-date technology to support critical operation systems is a significant benefit of data center operations and helps to ensure reliable data access.
In 2023, dozens of Hawaii businesses in the health care, airline, and finance fields, as well as state agencies, were operationally disrupted due to a local data outage, frustrating customers and residents.
Over the last decade, Hawaii has adopted various tax incentives to encourage the development of high-technology businesses in the State. The focus on high technology is commendable and recognized as a policy direction that will yield greater investment from within and outside of the State.
Accordingly, the purpose of this Act is to temporarily reinstate the technology infrastructure renovation tax credit and expand the definition of "technology-enabled infrastructure" to include data servers.
SECTION 2. Section 235-110.51, Hawaii Revised Statutes, is amended as follows:
1. By amending subsections (b) and (c) to read:
"(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,] other
entity taxed as a partnership for federal income tax purposes, 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)."
2. By amending subsections (h), (i), and (j) to read:
"(h) The tax credit allowed under this section
shall [not] be available for taxable years beginning after December 31, [2010.] 2025, but shall not be available for
taxable years beginning after December 31, 2027.
(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,]:
(1) Plan,
design, install, construct, [and] repair,
replace, monitor, test, or purchase technology-enabled infrastructure machinery and equipment [to
provide]; or
(2) Provide a commercial building with technology-enabled infrastructure.
"Technology-enabled infrastructure" means:
(1) Either:
(A) High
speed telecommunications systems that provide [Internet], in whole or
in part, internet access, direct satellite communications access, and
videoconferencing facilities; or
(B) Data servers;
(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[.] for taxable years beginning before January 1, 2026."
SECTION 3. The department of taxation shall submit a report of its findings and recommendations on the collection of the technology infrastructure renovation tax credit pursuant to this Act, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2029.
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 3000, and shall apply to taxable years beginning after December 31, 2025.
Report Title:
DOTAX; Technology Infrastructure Renovation Tax Credit; Reinstatement; Technology-Enabled Infrastructure; Data Servers; Report
Description:
For taxable years beginning after 12/31/2025, temporarily reinstates the Technology Infrastructure Renovation Tax Credit and expands the definition of "technology-enabled infrastructure" to include data servers. Requires the Department of Taxation to submit a report to the Legislature. Effective 7/1/3000. (HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
THE SENATE |
S.B. NO. |
338 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 2 |
|
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that upgrading and modernizing equipment necessary for data storage will improve resilience against physical damage caused by weather-related events and cybersecurity threats and ensure the continued, uninterrupted provision of services to Hawaii businesses, state government and satellite agencies, and residents.
Leveraging modern and up-to-date technology to support critical operation systems is a significant benefit of data center operations, where one of the core missions is to stay at the forefront of technological advancements, enabling reliable data access 99.999 per cent of the time.
In mid-2023, dozens of Hawaii businesses in the health care, airline, and finance fields as well as state agencies were operationally disrupted due to a local data outage, frustrating customers and residents.
Over the last decade, Hawaii has adopted various tax incentives to encourage the development of high-technology businesses in the State. The focus on high technology is commendable and recognized as a policy direction that will yield greater investment from within and outside of the State.
Accordingly, the purpose of this Act is to temporarily reinstate the technology infrastructure renovation tax credit and expand the definition of "technology-enabled infrastructure" to include data servers.
SECTION 2. Section 235-110.51, Hawaii Revised Statutes, is amended as follows:
1. By amending subsections (b) and (c) to read:
"(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,] other
entity taxed as a partnership for federal income tax purposes, 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)."
2. By amending subsections (h), (i), and (j) to read:
"(h) The tax credit allowed under this section
shall [not] be available for taxable years beginning after December 31, [2010.] 2025, but shall not be available for
taxable years beginning after December 31, 2027.
(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]
repair, replace, monitor, test, or purchase
technology-enabled infrastructure machinery and
equipment [to]; or provide a
commercial building with technology-enabled infrastructure.
"Technology-enabled infrastructure" means:
(1) Either:
(A) High
speed telecommunications systems that provide [Internet], in whole or
in part, internet access, direct satellite communications access, and
videoconferencing facilities; or
(B) Data servers;
(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[.] for taxable years beginning before January 1, 2026."
SECTION 3. The department of taxation shall submit a report of its findings and recommendations on the collection of the technology infrastructure renovation tax credit pursuant to this Act, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2029.
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2050, and shall apply to taxable years beginning after December 31, 2025.
Report Title:
DOTAX; Technology Infrastructure Renovation Tax Credit; Reinstatement; Technology-Enabled Infrastructure; Data Servers; Report
Description:
For taxable years beginning after 12/31/2025, temporarily reinstates the Technology Infrastructure Renovation Tax Credit and expands the definition of "technology-enabled infrastructure" to include data servers. Requires the Department of Taxation to submit a report to the Legislature. Effective 7/1/2050. (SD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
THE SENATE |
S.B. NO. |
338 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that upgrading and modernizing equipment necessary for data storage will improve resilience against physical damage caused by weather-related events and cybersecurity threats and ensure the continued, uninterrupted provision of services to Hawaii businesses, state government and satellite agencies, and residents.
Leveraging modern and up-to-date technology to support critical operation systems is a significant benefit of data center operations, where one of the core missions is to stay at the forefront of technological advancements, enabling reliable data access 99.999 per cent of the time.
In mid-2023, dozens of Hawaii businesses in the health care, airline, and finance fields as well as state agencies were operationally disrupted due to a local data outage, frustrating customers and residents.
Over the last decade, Hawaii has adopted various tax incentives to encourage the development of high-technology businesses in the State. The focus on high technology is commendable and recognized as a policy direction that will yield greater investment from within and outside of the State.
Accordingly, the purpose of this Act is to temporarily reinstate the technology infrastructure renovation tax credit and expand the definition of "technology-enabled infrastructure" to include data servers.
SECTION 2. Section 235-110.51, Hawaii Revised Statutes, is amended as follows:
1. By amending subsections (b) and (c) to read:
"(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,] other
entity taxed as a partnership for federal income tax purposes, 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)."
2. By amending subsections (h) and (i) to read:
"(h) The tax credit allowed under this section
shall [not] be available for taxable years beginning after December 31, [2010.]
2025, but shall not be available for taxable years beginning after December
31, 2027.
(i) As used in this section:
"Data server" means a computer system that is designed and configured for the process, storage, retrieval, and management of electronic data and provides database management and access services to client computers on a computer network.
"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]
repair, replace, monitor, test, or purchase technology-enabled
infrastructure machinery and equipment [to]; or provide a
commercial building with technology-enabled infrastructure.
"Technology-enabled infrastructure" means:
(1) Either:
(A) High speed telecommunications systems
that provide [Internet], in whole or in part, internet access,
direct satellite communications access, and videoconferencing facilities; or
(B) Data servers;
(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."
SECTION 3. The department of taxation shall submit a report of its findings and recommendations on the collection of the technology infrastructure renovation tax credit pursuant to this Act, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2029.
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2050, and shall apply to taxable years beginning after December 31, 2025.
Report Title:
DOTAX; Technology Infrastructure Renovation Tax Credit; Reinstatement; Technology-Enabled Infrastructure; Data Servers; Report
Description:
For taxable years beginning after 12/31/2025, temporarily reinstates the Technology Infrastructure Renovation Tax Credit and expands the definition of "technology-enabled infrastructure" to include data servers. Requires the Department of Taxation to submit a report to the Legislature. Effective 7/1/2050. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
THE SENATE |
S.B. NO. |
338 |
|
THIRTY-THIRD LEGISLATURE, 2025 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
Relating to Taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that upgrading and modernizing equipment necessary for data storage will improve the resilience against physical damage caused by weather-related events and cybersecurity threats and ensure the continued, uninterrupted provision of services to Hawaii businesses, state government and satellite agencies, and residents.
Leveraging modern and up-to-date technology to support critical operation systems is a significant benefit of data center operations, where one of the core missions is to stay at the forefront of technological advancements, enabling reliable data access 99.999 per cent of the time.
In mid-2023, dozens of Hawaii businesses in the health care, airline, and finance fields as well as state agencies were operationally disrupted due to a local data outage, frustrating customers and residents.
Over the last decade, Hawaii has adopted various tax incentives to encourage the development of high-technology businesses in the state. The focus on high technology is commendable and recognized as a policy direction that will yield greater investment from within and outside of the State.
Accordingly, the purpose of this Act is to temporarily reinstate the technology infrastructure renovation tax credit and expand the definition of "technology-enabled infrastructure" to include data servers.
SECTION 2. Section 235-110.51, Hawaii Revised Statutes, is amended as follows:
1. By amending subsections (b) and (c) to read:
"(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,] other
entity taxed as a partnership for federal income tax purposes, 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)."
2. By amending subsections (h) and (i) to read:
"(h) The tax credit allowed under this section
shall [not] be available for taxable years beginning after December 31, [2010.]
2025, but shall not be available for taxable years beginning after December
31, 2027.
(i) As used in this section:
"Data server" means a computer system that is designed and configured for the process, storage, retrieval, and management of electronic data and that provides database management and access services to client computers on a computer network.
"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]
repair, replace, monitor, test, or purchase technology-enabled
infrastructure machinery and equipment [to]; or provide a
commercial building with technology-enabled infrastructure.
"Technology-enabled infrastructure" means:
(1) Either:
[(1)] (A) High speed telecommunications systems
that provide [Internet], in whole or in part, internet access,
direct satellite communications access, and videoconferencing facilities; or
(B) Data servers;
(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."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2025, and shall apply to taxable years beginning after December 31, 2025.
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INTRODUCED BY: |
_____________________________ |
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Report Title:
Technology Infrastructure Renovation Tax Credit; Reinstatement; Technology-Enabled Infrastructure; Data Servers
Description:
For taxable years beginning after December 31, 2025, temporarily reinstates the Technology Infrastructure Renovation Tax Credit and expands the definition of "technology-enabled infrastructure" to include data servers.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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Date
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Status
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| Dec 8, 2025 | Carried over to 2026 Regular Session. |
| Mar 21, 2025 | Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Garrett, Kapela, Kitagawa, Ward excused (5). |
| Mar 21, 2025 | Reported from ECD (Stand. Com. Rep. No. 1444) as amended in HD 1, recommending passage on Second Reading and referral to FIN. |
| Mar 19, 2025 | The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Ilagan, Hussey, Holt, Tam, Templo, Todd, Matsumoto; Ayes with reservations: none; 0 Noes: none; and 0 Excused: none. |
| Mar 14, 2025 | Bill scheduled to be heard by ECD on Wednesday, 03-19-25 10:00AM in House conference room 423 VIA VIDEOCONFERENCE. |
| Mar 6, 2025 | Referred to ECD, FIN, referral sheet 19 |
| Mar 6, 2025 | Pass First Reading |
| Mar 4, 2025 | Received from Senate (Sen. Com. No. 137) in amended form (SD 2). |
| Mar 4, 2025 | Report Adopted; Passed Third Reading, as amended (SD 2). Ayes, 23; Aye(s) with reservations: Senator(s) McKelvey. Noes, 1 (Senator(s) Awa). Excused, 1 (Senator(s) Chang). Transmitted to House. |
| Feb 28, 2025 | 48 Hrs. Notice 03-04-25. |
| Feb 28, 2025 | Reported from WAM (Stand. Com. Rep. No. 828) with recommendation of passage on Third Reading, as amended (SD 2). |
| Feb 26, 2025 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, Aquino, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Feb 24, 2025 | The committee(s) on WAM will hold a public decision making on 02-26-25 10:04AM; Conference Room 211 & Videoconference. |
| Feb 12, 2025 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. |
| Feb 12, 2025 | Reported from LBT (Stand. Com. Rep. No. 357) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM. |
| Feb 7, 2025 | The committee(s) on LBT recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in LBT were as follows: 3 Aye(s): Senator(s) Aquino, Lee, C., Moriwaki; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Ihara, Fevella. |
| Feb 4, 2025 | The committee(s) on LBT has scheduled a public hearing on 02-07-25 3:00PM; Conference Room 224 & Videoconference. |
| Jan 21, 2025 | Referred to LBT, WAM. |
| Jan 15, 2025 | Introduced and passed First Reading. |
| Jan 14, 2025 | Pending Introduction. |
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Date
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Description
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Location
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Votes
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| Mar 19, 2025 | The committee on ECD recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Economic Development & Technology |
Passed |
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| Mar 4, 2025 | Third Reading | Senate Floor |
Passed |
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| Feb 26, 2025 | The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Ways and Means |
Passed |
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| Feb 7, 2025 | The committee(s) on LBT recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Labor and Technology |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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|---|---|---|
| Charter Communications | ** Support | |
| Hawaiian Telcom | *** Support | Mar 19, 2025 |
| Hawaiian Telecom | ** Support | |
| Servpac | ** Support | |
| Servpac, Charter Communications, and Hawaiian Telecom | ** Support |
STAND. COM. REP. NO. 1444
Honolulu, Hawaii
, 2025
RE: S.B. No. 338
S.D. 2
H.D. 1
Honorable Nadine K. Nakamura
Speaker, House of Representatives
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Madame:
Your Committee on Economic Development & Technology, to which was referred S.B. No. 338, S.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO TAXATION,"
begs leave to report as follows:
Your Committee finds that modernizing technology infrastructure, particularly data servers, is crucial to ensuring resilience against cyber threats and weather-related disruptions. Recent outages affecting state agencies and Hawaii businesses highlight the need for investment in reliable data storage and management systems. This measure encourages upgrades to technology infrastructure that will enhance data security and operational stability.
Your Committee has amended this measure by:
(1) Changing the effective date to July 1, 3000, to encourage further discussion; and
(2) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Economic Development & Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 338, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 338, S.D. 2, H.D. 1, and be referred to your Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Economic Development & Technology,
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____________________________ GREGGOR ILAGAN, Chair |
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STAND. COM. REP. NO. 828
Honolulu, Hawaii
RE: S.B. No. 338
S.D. 2
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred S.B. No. 338, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO TAXATION,"
begs leave to report as follows:
The purpose and intent of this measure is to promote the modernization of technological infrastructure in the State.
More specifically, this measure:
(1) Temporarily reinstates the Technology Infrastructure Renovation Tax Credit; and
(2) Expands the definition of "technology-enabled infrastructure" to include data servers.
Your Committee received written comments in support of this measure from Hawaiian Telcom and Servpac.
Your Committee received written comments on this measure from the Department of Taxation, Tax Foundation of Hawaii, and Charter Communications.
Your Committee finds that upgrading and modernizing equipment necessary for data storage will improve resilience against physical damage caused by weather-related events and cybersecurity threats and ensure the continued, uninterrupted provision of services to Hawaii businesses, state government and satellite agencies, and residents.
Your Committee has amended this measure by clarifying that the prohibition against taxpayers who claim the Technology Infrastructure Renovation Tax Credit from claiming any other income tax credit shall apply to taxable years beginning before January 1, 2026.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 338, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 338, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
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________________________________ DONOVAN M. DELA CRUZ, Chair |
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STAND. COM. REP. NO. 357
Honolulu, Hawaii
RE: S.B. No. 338
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committee on Labor and Technology, to which was referred S.B. No. 338 entitled:
"A BILL FOR AN ACT RELATING TO TAXATION,"
begs leave to report as follows:
The purpose and intent of this measure is to, for taxable years beginning after December 31, 2025:
(1) Temporarily reinstate the Technology Infrastructure Renovation Tax Credit; and
(2) Expand the definition of "technology-enabled infrastructure" to include data servers.
Your Committee received testimony in support of this measure from Servpac, Charter Communications, and Hawaiian Telecom.
Your Committee received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.
Your Committee finds that investment in local data center infrastructure is needed to fuel the State's economy and expand the high-tech sector. Local development will reduce reliance on the continental United States and enhance resilience in the event of global supply chain disruptions. This measure incentivizes this progress by temporarily reinstating the Technology Infrastructure Renovation Tax Credit and including data centers in its applicable uses.
Your Committee has amended this measure by:
(1) Requiring the Department of Taxation to submit a report to the Legislature before the Regular Session of 2029 on the collection of the Technology Infrastructure Renovation Tax Credit;
(2) Inserting an effective date of July 1, 2050, to encourage further discussion; and
(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the record of votes of the members of your Committee on Labor and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 338, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 338, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Labor and Technology,
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________________________________ HENRY J.C. AQUINO, Chair |
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Date
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Testimony PDF
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|---|---|
| Mar 19, 2025 | SB338_SD2_TESTIMONY_ECD_03-19-25_.PDF |
| Feb 25, 2025 | SB338_SD1_TESTIMONY_WAM_02-26-25_.PDF |
| Feb 7, 2025 | SB338_TESTIMONY_LBT_02-07-25_.PDF |
Discussed in Hearing
1MIN
House Standing Committee on Economic Development & Technology
29SEC
Senate Floor
Bill Author
