STAND. COM. REP. NO. 786

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 910

       S.D. 2

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 910, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO RENEWABLE FUELS TAX CREDIT,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to replace the requirements imposed upon the Department of Business, Economic Development, and Tourism relating to the certification, administration, and verification of the renewable fuels production tax credit with a survey to be filed with the department by each taxpayer claiming the credit.

 

     The Department of Taxation and the Department of Business, Economic Development, and Tourism submitted written comments on this measure.

 

     Your Committee finds that the Department of Business, Economic Development, and Tourism lacks the expertise and resources necessary to fulfill existing statutory duties pertaining to certification, administration, and verification under certain provisions of the State's renewable fuels production tax credit law.  Your Committee believes that the requirements of this measure, which are aligned with the department's existing resources and expertise, will still provide for the collection of relevant data regarding the tax credit's effectiveness.

 

     Your Committee has amended this measure by:

 

     (1)  Making a correction to clarify that the $3,000,000 annual aggregate cap on the renewable fuels production tax credit applies to a calendar year; and

 

     (2)  Changing the effective date to July 1, 2050, and applying the measure to taxable years after December 31, 2050, to facilitate further discussion on the measure.

 

     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. 910, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 910, S.D. 2.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

________________________________

JILL N. TOKUDA, Chair