§206M-15.2 Research and development program established. (a) There is established within the development corporation, the research and development program, to help Hawaii-based small businesses optimize research and development performed in Hawaii.

(b) Subject to available funds, the research and development program shall:

(1) Apply the research and development special fund to support product development, technology transfer, and commercialization;

(2) Provide capital to support accelerated commercialization activities for qualified Hawaii-based small businesses;

(3) Provide capital to sustain high-potential infrastructure development to assist qualified Hawaii-based small businesses towards commercial success;

(4) Promote efforts that reverse the loss of qualified workers to other states by providing jobs to retain existing Hawaii technology employees and enable highly qualified scientists and engineers to return to living-wage jobs in Hawaii;

(5) Promote efforts that keep technology companies in Hawaii by limiting the need to seek out-of-state venture capital, which dilutes local ownership and increases the probability of high-potential technology companies moving from Hawaii; and

(6) Provide grants of up to $300,000 for critical product development that enables a qualified Hawaii-based small business to achieve significant product development and technical milestones.

(c) To receive funding, a Hawaii-based small business shall submit to the development corporation proof of the federal research and development tax credits received. Proof shall be in the form of copies of the small business Internal Revenue Service Form 6765 Credit for Increasing Research Activities as filed. The business shall be eligible to receive a grant in an amount equal to the average of the federal tax credit for the prior three tax years.

(d) In reviewing grant applications pursuant to this section, the development corporation shall analyze each application to determine whether the item to be undertaken will be economically viable and beneficial to the State.

(e) The development corporation may adopt rules pursuant to chapter 91 necessary to carry out the purposes of this section.

(f) For purposes of this section:

"Hawaii-based small business" means a company:

(1) Headquartered in the State;

(2) Doing business in the State for not less than five years; and

(3) Employing fifteen or more residents with income subject to taxation pursuant to chapter 235.

"Resident" shall have the same meaning as in section 235-1. [L 2018, c 141, pt of §2]