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Committee advances extension and refinement of research tax credit, emphasizing ocean and space commercialization
Summary
Senators advanced HB 2546 with amendments after testimony from HTDC and local companies that tax credits support R&D and commercialization in ocean and space sectors; committee asked HTDC for metrics on jobs, budgets and success rates.
HB 2546, a bill extending and refining the tax credit for research activities, was advanced by the committee on March 24 after extended testimony from the Hawaii Technology Development Corporation (HTDC), Creative Industries, and multiple local businesses including Mackay Ocean Engineering and Ocean Net.
HTDC staff and company representatives said the R&D tax credit is a critical tool to help local firms conduct research and move toward commercialization. HTDC described a strategy to prioritize ocean and space sectors, arguing those sectors better retain successful companies in Hawaii and can generate higher‑paying jobs. Committee members pressed HTDC on metrics: current budgets and program scale (HTDC reported figures in the range of $1.4 million to $4.4 million depending on which programs were included), conversion rates from innovation centers to sustained companies and whether tax credits should be paired with direct appropriations or other supports.
Ken Chum (Ocean Net) and Leah Ablin (Mackay Ocean Engineering) testified in support and described how the credit helps local commercialization, STEM outreach and internships. Senators requested data on how many innovation centers have led to sustained local companies and asked for clarity on the tax credit’s sunset/review timing; HTDC said the credit currently has a statutory review/sunset point around 2029 and agreed to follow up with additional data.
The committee passed HB 2546 with an SD1 amendment to redocket the effective date to July 1, 2030 and to incorporate DOTax‑recommended language; members said they expect further discussion around metrics and commercialization outcomes as the bill proceeds.
