STAND. COM. REP. NO. 1345

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1277

       H.D. 2

       S.D. 2

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Madam:

 

     Your Committee on Economic Development and Taxation, to which was referred H.B. No. 1277, H.D. 2, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO TAX CREDITS,"

 

begs leave to report as follows:

 

     The purpose of this measure is to revitalize the Leeward coast by:

 

     (1)  Establishing a $75,000,000 income tax credit for affordable rental housing and educational and training facilities constructed on the leeward coast of Oahu; and

 

     (2)  Repealing the unused $75,000,000 Ko Olina Resort and Marina and Makaha Resort tax credit.

 

     Testimony in support of the intent of this measure was received from the Department of Business, Economic Development, and Tourism; Department of Taxation; Office of Planning; and Ko Olina Resort and Marina.  The Tax Foundation of Hawaii submitted comments on this measure.

 

     Your Committee is in strong support of expanding the economic and housing opportunities for residents of the Leeward coast, and believes that a range of options should be considered before final decisions are made.

 

     Your Committee has amended this measure by:

     (1)  Adding commercial projects and specifying what shall be included in the qualified costs for commercial projects;

 

     (2)  Changing the maximum dollar limit for the three tax credit project categories to unspecified amounts;

 

     (3)  Changing the definition of "Leeward coast" to encompass unspecified state senatorial districts, with first preference for qualified projects on lands owned by the Department of Hawaiian Home Lands;

 

     (4)  Providing that the Act shall apply to taxable years beginning after December 31, 2050, for the purposes of further discussion; and

 

     (5)  Making technical amendments for the purposes of clarity.

 

     As affirmed by the record of votes of the members of your Committee on Economic Development and Taxation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1277, H.D. 2, 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 H.B. No. 1277, H.D. 2, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Economic Development and Taxation,

 

 

 

____________________________

CAROL FUKUNAGA, Chair