 Business Tax Credits
On Mon, 23 Jul 2007, Jerry Okamura wrote:
> Put yourself in the shoes of a business. "If" some
> state offers you a tax credit to open a business in
> the state, you would be tempted to take advantage of
> that offer wouldn't you? And "if" that startup money
> allowed you to start a business, and it thrives,
> would you remain in the state, or would you move out
> of the state, and find a state with a lower tax
> structure, less regulations, and lower labor cost, or
> would you stay in the State of Hawaii?
There is already such a law in Hawaii that applies to
the movie industry and to high tech.
IIRC there are some restrictions to applying the law
which apply more generally. For example, IIRC a Hawaii
company or business cannot solicit more than 25 private
investors in total. But IIRC I would presume that this
does not apply to an IPO-- which would be covered by
SEC law. Not sure how the 25 rule would apply to a
Hawaii S-Corp which many startups form. Here presumable
the stock could even be issued to employees in lieu of
a cash salary and many more than 25 small investors
could hold the stock. When and if the S-Corp would go
public or might be acquired by a larger company, then
the stock holders could benefit from their stock
ownership.
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