Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1325
                                     S.D. 1
                                     H.D. 2

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Finance, to which was referred S.B. No.
1325, S.D. 1, H.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to encourage construction and
renovation of real property through a tax credit.

     The Land Use Research Foundation of Hawaii, Waikiki
Improvement Association, Estate of James Campbell, the Queen Emma
Foundation, Hawaii Hotel Association, Hilton Hawaiian Village,
ABC Stores, Sheraton Princess Kaiulani Waikiki Hotel, Jas. W.
Glover, Ltd. General Contractors, Maui Contractors Association,
SC Pacific Corp, Armstrong Builders, Ltd., PLA Incorporated,
Hawaii Activities and Tours Association, and a concerned
individual testified in support of the measure.

     The Department of Business, Economic Development, and
Tourism, Department of Taxation, Department of Budget of the City
and County of Honolulu, Tax Foundation of Hawaii, Hawaii Chapter
of the Sierra Club, Victoria Ward, Limited, and Hawaii Resort
Developers Conference commented on the measure.

     Your Committee has amended the measure by replacing the
credit percentages for determining the tax credit with
unspecified percentages

                                 STAND. COM. REP. NO. 1840
                                 Page 2

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
1325, S.D. 1, H.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 1325,
S.D. 1, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,

                                   DWIGHT Y. TAKAMINE, Chair