CONFERENCE COMMITTEE REP. NO.100-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 2907

S.D. 2

H.D. 2

C.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2907, S.D. 2, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to establish a tax credit for the private development of attractions and educational facilities at Ko Olina Resort and Marina.

Your Committee on Conference finds that this measure will spur the further development of Ko Olina and the surrounding area, to the benefit of residents and visitors alike.

Your Committee on Conference has amended this measure to:

(1) Make the tax credit applicable for qualified costs incurred in the six taxable years from January 1, 2003, to December 31, 2008, up to a maximum of $75,000,000 of credits for all six years, and a maximum of $7,500,000 in any one year, in the aggregate for all qualified taxpayers;

(2) Clarify that to qualify for the tax credit, a taxpayer shall have expended qualified costs on and be developing a world-class aquarium and marine science research facility, and shall dedicate one-half of taxable income of the aquarium to the State, beginning on the seventeenth year;

(3) Require a qualified taxpayer, no later than March 31 of each year in which qualified costs were expended in the previous taxable year, to submit a written, certified statement to the director of taxation on the qualified costs and the tax credit claimed;

(4) Include in the definition of "qualified costs" plans and design, and costs for equipment that is permanently affixed to a building or structure;

(5) Make the Act effective upon approval for qualified costs incurred after December 31, 2002; and

(6) Make technical, nonsubstantive amendments for the purposes of clarity and style.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2907, S.D. 2, H.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2907, S.D. 2, H.D. 2, C.D. 1.

 

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________

LEI AHU ISA, Co-Chair

____________________________

DONNA MERCADO KIM, Chair

____________________________

DWIGHT Y. TAKAMINE, Co-Chair

____________________________

CAL KAWAMOTO, Co-Chair

____________________________

BRIAN T. TANIGUCHI, Co-Chair