REPORT TITLE:
Enterprise Zones


DESCRIPTION:
Authorizes the sale of electricity generated by renewable energy
facilities to be sold to a public utility to qualify for state
enterprise zone benefits.  (HB2330 HD1)


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2330
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO ENERGY.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The purpose of this Act is to assist electricity
 
 2 producing renewable energy facilities by allowing these
 
 3 facilities to benefit from the State's enterprise zone program.
 
 4 This Act also provides an exemption from the general excise tax
 
 5 for the sale of electric power to a public utility.
 
 6      SECTION 2.  Section 209E-2, Hawaii Revised Statutes, is
 
 7 amended by amending the definition of "qualified business" to
 
 8 read as follows:
 
 9      ""Qualified business" means any corporation, partnership, or
 
10 sole proprietorship authorized to do business in the State
 
11 [which] that is qualified under section 209E-9 and is:
 
12      (1)  Subject to the state corporate or individual income tax
 
13           under chapter 235;
 
14      (2)  Engaged in manufacturing, the wholesale sale of
 
15           tangible personal property as defined in section 237-4,
 
16           or a service business as defined in this chapter; [or]
 
17      (3)  Engaged in producing agricultural products where the
 
18           business is a producer as defined in section 237-5[.];
 
19           or
 

 
Page 2                                                     2330
                                     H.B. NO.           H.D. 1
                                                        
                                                        

 
 1      (4)  Engaged in producing electric power from a renewable
 
 2           energy facility for sale primarily to a public utility
 
 3           company for resale to the public."
 
 4      SECTION 3.  Section 209E-11, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "�209E-11  State general excise and use tax exemptions.  The
 
 7 department shall certify annually to the department of taxation
 
 8 that any qualified business is exempt from the payment of general
 
 9 excise taxes on the gross proceeds from the manufacture of
 
10 tangible personal property, the wholesale sale of tangible
 
11 personal property, the sale of electric power to a public utility
 
12 for resale to the public, or the engaging in a service business
 
13 by a qualified business in the enterprise zone and exempt from
 
14 the use tax for purchases by a qualified business.  The gross
 
15 proceeds received by a contractor shall be exempt from the
 
16 general excise tax for construction within an enterprise zone
 
17 performed for a qualified business within an enterprise zone.
 
18 The exemption shall extend for a period not to exceed seven
 
19 years."
 
20      SECTION 4.  Statutory material to be repealed is bracketed.
 
21 New statutory material is underscored.
 
22      SECTION 5.  This Act shall take effect upon its approval.