Report Title:

Ethanol; Investment

Description:

Expands the definition of "investment" to include certain enumerated costs.

THE SENATE

S.B. NO.

3207

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO ETHANOL TAX CREDIT.

 

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

SECTION 1. Section 235-110.3, Hawaii Revised Statutes, is amended by amending the definition of "investment" to read as follows:

""Investment" means a nonrefundable capital expenditure [directly] related to the development and construction of any qualifying ethanol production facility, [exclusive of land costs.] in accordance with section 263A of the Internal Revenue Code relating to uniform capitalization costs. For purposes of this section, investment excludes land costs and also includes any investment for which the taxpayer is at risk, as that term is used in section 465 of the Internal Revenue Code (with respect to deductions limited to amount at risk)[.], and includes costs associated with:

(1) The receiving and storage of feedstocks, including associated pumps and pipelines;

(2) The processing of feedstocks, including dilution and clarification;

(3) Yeast propagation or enzyme preparation and fermentation, distillation, and dehydration;

(4) Utilities, including water treatment systems, cooling towers, boilers and associated equipment, and electricity generation, including generators and turbines;

(5) Byproduct and waste treatment and distribution, consisting of storage tanks or storage reservoirs, associated pumps and pipelines, and waste distribution equipment; and

(6) Finished product storage tanks, including associated pumps and pipelines."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________