STAND. COM. REP. NO. 925

Honolulu, Hawaii

, 2005

RE: H.B. No. 955

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 955 entitled:

"A BILL FOR AN ACT RELATING TO DROUGHT MITIGATING FACILITIES,"

begs leave to report as follows:

The purpose of this bill is to encourage the construction and repair of drought mitigation water storage facilities by:

(1) Increasing the amount of the Drought Mitigation Water Storage Facility Tax Credit (Tax Credit) from four to 20 percent;

(2) Repealing the date after which the Tax Credit is no longer available; and

(3) Including the cost of new equipment related to the construction or repair of ancillary structures as a cost that qualifies for the Tax Credit.

The Department of Land and Natural Resources, Department of Agriculture, Department of Taxation, Big Island Farm Bureau, Hawaii Farm Bureau Federation, Maui County Farm Bureau, Hawaii Agriculture Research Center, Hawaii Crop Improvement Association, and Pineapple Growers Association of Hawaii supported this bill. The Tax Foundation of Hawaii offered comments.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 2010, and changing the percentage of the Tax Credit to an unspecified amount to promote further discussion; and

(2) Making technical, nonsubstantive amendments for style, clarity, and consistency.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 955, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 955, H.D. 1.

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

 

____________________________

DWIGHT TAKAMINE, Chair