Hawaiʻi's Technology Community

Do you care about Act 221/215?

Some folks are concerned that the Leg will let 221/215 expire in 2010 and either not renew it, or renew some Frankenstein that will render the benefit ineffective.

I'd like to know how the Entreprenuers here feel about Act 221/215.

1) Do you make use of it?

2) Would you be willing to fight for it?

Replies to This Discussion

Permalink Reply by John on July 29, 2008 at 10:36pm

Hi Peter,

Can you briefly explain the economic benefits for the state? As in, the state has spent X in time period Y and this has returned A, B and C.

I know there is a 2007 Taxation study but I cannot find it online yet. Also, a brief description would improve the discussion.

Peter Kay said:

IMO 221/215 tax refunds are probably the best, most efficient money the state has ever spent. I'd love to see the numbers behind ANY state-driven economic diversity program that has done more or cost less.

Permalink Reply by Peter Kay on July 29, 2008 at 11:08pm

That's a fantastic question John and while I don't have the info onhand, I know that this research has been done and the numbers are clearly positive. There are a group of folks are working hard to produce/publish these reports and I will definitely do so here when I get a hold of those numbers.

Permalink Reply by Truman Leung on July 30, 2008 at 5:29pm

Being bootstrapped, the refundable investment credits don't provide a benefit to my company. However, I do take advantage of the state income tax exemption for all income derived from intellectual property created by the company, which in my case is all income generated by the company. This benefit is provided for under Section 235-7.3, HRS:

http://www.capitol.hawaii.gov/hrscurrent/Vol04_Ch0201-0257/HRS0235/...

Will this expire in 2010?

Permalink Reply by Peter Kay on July 31, 2008 at 12:40am

Good question. Dunno.

Permalink Reply by Daniel Leuck on November 1, 2008 at 1:22pm

One important change that needs to happen is a redefinition of "software company" to include SaaS providers. The fact I have to ship a box to be considered a software company is absolutely idiotic, not to mention environmentally unsound. Doesn't our state want tax revenue from the next Google?

Permalink Reply by John on November 1, 2008 at 1:51pm

Dan, so how is ooi going to deal with this limitation? Will you send commemorative thumb drives to each user who signs up? :)

Permalink Reply by Daniel Leuck on November 1, 2008 at 3:43pm

We have been advised that we can either apply under entertainment or ship some aspect of the software to customers.

John said:

Dan, so how is ooi going to deal with this limitation? Will you send commemorative thumb drives to each user who signs up? :)

Do you care about Act 221/215?

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