STAND. COM. REP. NO. 361-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2327
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Energy and Environmental Protection, to
which was referred H.B. No. 2327 entitled: 

     "A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

     The purpose of this bill is to provide taxpayers a tax
incentive to purchase and use electric vehicles by:

     (1)  Providing a ten percent tax credit of the purchase
          price; and

     (2)  Providing a tax deduction of up to $30,000 for the cost
          and installation of a vehicle recharging station.

     The City Council, the Hawaiian Electric Company, and the
Electric Vehicle Association of Hawaii testified in support of
this bill.  The Hawaii Electric Vehicle Demonstration Project and
the University of Hawaii at Manoa Environmental Center testified
in support of the intent of this bill.  The Tax Foundation of
Hawaii commented on this bill.  The Department of Taxation
testified in opposition to this bill.

     Your Committee has learned that this bill mirrors the
federal tax incentive by allowing for a tax credit and deduction
for expenses related to a purchase of an electric vehicle.

 
 
 
 
 
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                                 Page 2

 

     Your Committee has amended this bill by:

     (1)  Including the cost of a vehicle recharging station as a
          deduction; and

     (2)  Requiring that the charging station must be accessible
          to the public.

     As affirmed by the record of votes of the members of your
Committee on Energy and Environmental Protection that is attached
to this report, your Committee is in accord with the intent and
purpose of H.B. No. 2327, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as H.B. No.
2327, H.D. 1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Energy and
                                   Environmental Protection,



                                   ______________________________
                                   HERMINA M. MORITA, Chair