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State program

Hawaii Tax Credit for Research Activities

A refundable credit for qualified high technology businesses, subject to an annual statewide cap and certification.

Run a mock audit for HawaiiOfficial source (opens in a new tab)
  • Refundable
  • Pre-approval required

Last reviewed October 2026

Program overview

Hawaii's research credit is available to qualified high technology businesses and is refundable, making it one of the most cash-friendly programs in the country. Claimants must certify with the Hawaii Department of Business, Economic Development and Tourism, submit an annual survey, and have their qualified research expenses verified. The program operates under an aggregate annual cap, and claims may be reduced pro rata if total certified claims exceed the cap in a given year.

Eligibility

Qualified high technology businesses with more than half of activities in qualified research conducted in Hawaii, holding an annual certification and filing the required survey by the statutory deadline.

Benefits

Refundable credit paid in cash, tied to the federal research credit rules with Hawaii-only expenses.

Caps, deadlines and forms

Caps and limits

  • The program operates under an aggregate annual cap, and claims may be reduced pro rata if total certified claims exceed the cap in a given year.

Deadlines

  • Qualified high technology businesses with more than half of activities in qualified research conducted in Hawaii, holding an annual certification and filing the required survey by the statutory deadline.

Forms

Filing forms are listed by the revenue authority: official source (opens in a new tab).

Hawaii IDR questions

What an examiner is likely to ask about this credit. S1–S7 apply to every state claim; the rest come from this program's own rules.

  1. S1Confirm the research was physically performed within Hawaii.
  2. S2Provide the Hawaii qualified research expense calculation and base amount.
  3. S3Reconcile Hawaii expenses to the federal Form 6765.
  4. S4Show how wages and supplies were apportioned between Hawaii and other locations.
  5. S5Provide the Hawaii return and credit schedule for each year claimed.
  6. S6Show the carryforward schedule for unused Hawaii credits.
  7. S7Confirm the entity claiming the credit is the entity subject to Hawaii tax.
  8. HI-1Provide the pre-approval, certification or application filed for the Hawaii credit, with its filing date.
  9. HI-2Show the Hawaii refund eligibility tests (such as small business status) were met in each year refunded.

Draft questions for illustration, reviewed by a specialist before any engagement.

Common weak spots

  • Expenses for research performed outside Hawaii included in the Hawaii claim.
  • Missing or late pre-approval: the application or certification was not in place when required.
  • Caps and proration not modelled, so the expected benefit is overstated.
  • Refund claimed without evidence that the eligibility tests were met.
  • Base amount computed from incomplete historical records.

See how your claim holds up

The mock audit drafts these questions for your own claim and scores the evidence behind each answer.

Run a mock audit for Hawaii

Information on this page is general in nature, not tax advice. Program details change frequently; always confirm current rules with the relevant revenue authority or engage a specialist before acting. Last reviewed October 2026.

Find out what your research actually qualifies for

A scoping conversation takes thirty minutes and costs nothing. You leave with a view on eligibility, likely credit range and the documentation you would need.

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