If passed, this bill would allow businesses to claim a tax credit of four percent on renovation costs associated with updating their technological systems. The proposed changes to Section 235-110.51 of the Hawaii Revised Statutes aim to support both private enterprises and public agencies in improving their technological infrastructures. By providing a tangible financial incentive for modernization, the legislation can potentially spur greater investment in high-technology businesses within the state, aligning with Hawaii's ongoing policy direction toward fostering a robust tech industry.
Summary
Senate Bill 2527 proposes the temporary reinstatement of the Technology Infrastructure Renovation Tax Credit in Hawaii, while also expanding the definition of 'technology-enabled infrastructure' to include data servers. This amendment is aimed at enhancing the resilience of Hawaii's critical data storage systems against weather-related incidents and cybersecurity threats. The bill acknowledges the disruption faced by various sectors in mid-2023 due to local data outages and emphasizes the need for modernized technology to ensure uninterrupted services across essential industries such as healthcare, finance, and state government operations.
Sentiment
The sentiment surrounding SB 2527 appears to be generally positive among stakeholders in the technology and business sectors, who see the value in developing a more resilient and modern infrastructure. However, concerns may arise regarding the specific implementation of the tax credit and its accessibility to smaller businesses or startups that may not have the same resources as larger entities. The focus on high technology is perceived as a progressive move by proponents, reinforcing Hawaii's commitment to economic development through advanced infrastructure.
Contention
While most discussions have centered on the benefits of improved technology and the financial stimuli provided by tax credits, notable points of contention could emerge around the timeframe for the tax credit's availability and the potential impact on state budgets. Critics might also scrutinize whether this bill adequately addresses the needs of less technologically advanced businesses or if it primarily benefits larger corporations capable of quick upgrades. Ensuring equitable access to benefits for all business tiers underlines the importance of this legislation's design and anticipated outcomes.
Requires electric public utility to install and operate smart meter infrastructure and technology at certain customers' premises; provides employment protections for certain electric public utility employees.
Establishes the Information Technology Infrastructure Fee to be assessed on certain state transactions to support the state's information technology infrastructure (OR INCREASE SD RV See Note)