STAND. COM. REP. NO.2156
RE: S.B. No. 2262
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Your Committee on Economic Development and Technology, to which was referred S.B. No. 2262 entitled:
"A BILL FOR AN ACT RELATING TO INCOME TAX CREDITS,"
begs leave to report as follows:
The purpose of this measure is to extend the drop-dead date for the residential construction and remodeling tax credit and the cut-off date for claiming qualifying costs under the tax credit to December 31, 2005, and July 1, 2005, respectively. This measure also allows developers to transfer the tax credit to buyers of the property that was the basis of the tax credit.
Your Committee received testimony in favor of this measure from the Department of Budget and Finance, Land Use Research Foundation of Hawaii, General Contractors Association of Hawaii, Subcontractors Association of Hawaii, AIA Hawaii State Council, Hawaii Construction Industry Association, Visitor Industry Coalition, Hawaii Operating Engineers Industry Stabilization Fund, Ko Olina Resort and Marina, and Building Industry Association – Hawaii. Your Committee also received comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.
Your Committee finds that this measure will provide a needed boost to combat the lingering effects of Hawaii's economic downturn. The economic benefits of the additional wages and taxes paid as a direct result of the renovations and new construction, as well as more taxes that will be generated from additional spending by our residents, will make up for any lost tax revenue resulting from the tax credit.
As affirmed by the record of votes of the members of your Committee on Economic Development and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2262 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Economic Development and Technology,
ROD TAM, Chair