Hawaii --Corporate, Personal Income Taxes: High Technology Business Investment Tax Credit Comfort Rulings Limited

Effective immediately, the Hawaii Department of Taxation is exercising its discretion with regard to construing Hawaii revenue laws and will not issue high tech comfort rulings to businesses relying upon the gross income test as the means of qualifying as a qualified high technology business (QHTB) for purposes of the corporate and personal income tax credit for high technology business investment. The Department states that it will not issue comfort rulings determining whether a business satisfies the gross income test for purposes of qualifying as a QHTB because of the highly fact intensive nature of qualifying as a QHTB under the gross income test, including the uncertainty and ambiguity of: 1) revenue streams associated with qualified research; 2) determining the source of product sales; 3) manufacturing or production quantification; and 4) the extent services are performed in the state within the meaning of the relevant statute.

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Announcement No. 2008-07, Hawaii Department of Taxation, October 30, 2008.