Hawaii suspends tech tax credits; bill would delay payments till 2013
By MARK NIESSE
HONOLULU — Tax credits that lured investors into supporting high-tech businesses wouldn't be paid out over the next three years under a bill approved by Hawaii lawmakers.
The state Senate passed the measure 14-11 Tuesday, sending it to Gov. Linda Lingle after it had previously passed the House.
The proposal aims to raise $93 million for the government next year by delaying payment of the tax credits until 2013.
But supporters of the tax credit say the state won't see that money anytime soon because they will likely sue the state.
They claim the state is violating the U.S. Constitution by going back on its promise to pay these tax credits.
The Legislature also approved a related bill repealing some of the high-tech tax credits this year. That measure would raise an estimated $13 million.
The bills are SB2401 and SB2001.