STAND. COM. REP. NO.380

Honolulu, Hawaii

, 2001

RE: S.B. No. 369

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Agriculture, to which was recommitted S.B. No. 369, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AGRICULTURE,"

begs leave to report as follows:

The purpose of this measure is to allow an income tax credit for investments over $200,000 for the planning, design, construction, reconstruction, improvement, altering, or repair of irrigation systems or drainage systems.

Your Committee received testimony on this measure from the Department of Agriculture deferring to the testimony of the Department of Taxation opposing this measure.

Your Committee finds that growth of Hawaii's agriculture industry is dependent on the existence of supporting infrastructure. Since the dissolution of Hawaii's large agriculture conglomerates, major investment in the construction and maintenance of agriculture infrastructure has waned. The tax credit provided by this measure will serve as an incentive for further investment in agriculture infrastructure.

Your Committee has amended this measure by:

(1) Ensuring that the tax credit provided by this measure is only allowable for investments in improvements that have not already been the subject of another tax credit; and

(2) Making technical, nonsubstantive changes.

As affirmed by the record of votes of the members of your Committee on Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 369, S.D. 1, as amended herein, and recommends that it be referred to the Committee on Ways and Means in the form attached hereto as S.B. No. 369, S.D. 2.

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

____________________________

JAN YAGI BUEN, Chair