STAND. COM. REP. NO. 667

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 302

       S.D. 2

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 302, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO TAXATION,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to facilitate the renovation of technology infrastructure in the State.

 

     Specifically, the measure would achieve this purpose by:

 

     (1)  Temporarily reinstating the technology infrastructure renovation tax credit; and

 

     (2)  Expanding the definition of "technology-enabled infrastructure" to include data servers.

 

     Your Committee received written comments in support of this measure from the Hawaii Technology Development Corporation, the Chamber of Commerce Hawaii, and Servpac.

 

     Your Committee received written comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

 

     Your Committee finds that, among other things, Act 221, Session Laws of Hawaii 2001, established the technology infrastructure renovation tax credit to incentivize the growth of high technology businesses and associated industries in the State by defraying the cost of renovating commercial buildings with technology-enabled infrastructure.  Your Committee notes that the tax credit has not been available since 2010.  Your Committee further finds that technology has advanced since the tax credit was originally enacted, and that data centers and fiber optic networks are now driving forces that support the creation and growth of high technology businesses in Hawaii.

 

     Your Committee has amended this measure by:

 

     (1)  Clarifying the taxable years during which the technology infrastructure renovation tax credit shall be available; and

 

     (2)  Making technical nonsubstantive amendments for purposes of clarity, consistency, 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. 302, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 302, S.D. 2.

 

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

 

 

 

________________________________

DONOVAN M. DELA CRUZ, Chair