STAND. COM. REP. NO.  1637

 

Honolulu, Hawaii

                , 2015

 

RE:   S.B. No. 349

      S.D. 2

      H.D. 2

 

 

 

 

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

 

Sir:

 

     Your Committee on Finance, to which was referred S.B. No. 349, S.D. 2, H.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose of this measure is to promote greater energy security by:

 

     (1)  Establishing a refundable renewable fuels production tax credit; and

 

     (2)  Repealing the ethanol facility tax credit.

 

     The Office of Economic Development of the County of Kauai; Hawaii Energy Policy Forum; Renewable Energy Action Coalition of Hawaii; Ulupono Initiative; Anaergia Services, LLC; Hawaii Biofuels Foundation; Pacific Biodiesel Technologies; Hawaii Renewable Energy Alliance; BioEnergy Hawaii, LLC; and an individual supported this measure.  The Department of Business, Economic Development, and Tourism; Department of Taxation; and Tax Foundation of Hawaii commented on this measure.  


     Your Committee has amended this measure by:

 

(1)  Changing the amount of the renewable fuels production tax credit and maximum tax credit amount that can be claimed to unspecified amounts;

 

     (2)  Changing the aggregate credit cap to an unspecified amount;

 

     (3)  Making the tax credit non-refundable;

 

     (4)  Changing the effective date to July 1, 2030, to encourage further discussion; and

 

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

 

     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 S.B. No. 349, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 349, S.D. 2, H.D. 2.

 

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

 

 

 

 

____________________________

SYLVIA LUKE, Chair