STAND. COM. REP. NO. 2711
RE: S.B. No. 2968
Honorable Donna Mercado Kim
President of the Senate
Twenty-Seventh State Legislature
Regular Session of 2014
State of Hawaii
Your Committee on Ways and Means, to which was referred S.B. No. 2968, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO TOURISM STIMULUS INITIATIVES,"
begs leave to report as follows:
The purpose and intent of this measure is to establish a temporary income tax credit for hotel construction and renovation.
Your Committee received written comments in support of this measure from the Hawaii Tourism Authority, Hawaii Leeward Planning Conference, and Wyndham Vacation Ownership. Written comments in opposition were received from one individual. The Department of Taxation and the Tax Foundation of Hawaii submitted written comments on the measure.
Your Committee finds that tourism is Hawaii's principal industry, with visitor expenditures estimated to be over $15,000,000,000 in 2013. Your Committee also finds that, in order to remain competitive with other global destinations, Hawaii must revitalize its aging hotel and resort infrastructure. Your Committee believes that this measure will strengthen Hawaii's economy by encouraging hotel construction and renovation.
Your Committee has amended this measure by:
(1) Changing the amount of the tax credit to an unspecified amount;
(2) Requiring that, in order to qualify for the tax credit, construction or renovation costs must be certified by the Department of Business, Economic Development, and Tourism;
(3) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and
(4) Making technical nonsusbstantive amendments for the purposes of consistency, clarity, and style.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2968, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2968, S.D. 2.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
DAVID Y. IGE, Chair