STAND. COM. REP. NO. 2978

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2955
                                        H.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Economic Development and Education and
Technology, to which was referred H.B. No. 2955, H.D. 1,
entitled: 

     "A BILL FOR AN ACT RELATING TO NEW ECONOMY SKILLS TRAINING,"

beg leave to report as follows:

     The purpose of the measure is to support the growth and
development of technology in Hawaii by providing an income tax
credit for the cost of training the taxpayer or the taxpayer's
employees to upgrade their technology-related skills.

     Testimony in support of the measure was received from the
Governor's Special Advisor on Technology Development, High
Technology Development Corporation (HTDC), Hawaii Technology
Trade Association, and a student from the University of Hawaii.
The Department of Taxation supported the intent of the measure
but expressed concerns.  The Tax Foundation of Hawaii submitted
comments.

     Your Committees find that tax credits are an efficient way
for Hawaii to provide incentives to businesses and individuals to
capitalize on the growth of technology-related industries.  By
requiring the creation or acquisition of a new job, the proposed
tax credit isolates the total cost of this program and gives
incentives for continuing education in areas where the skills are
in demand.


 
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                                   STAND. COM. REP. NO. 2978
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     As affirmed by the records of votes of the members of your
Committees on Economic Development and Education and Technology
that are attached to this report, your Committees are in accord
with the intent and purpose of H.B. No. 2955, H.D. 1, and
recommend that it pass Second Reading and be referred to the
Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Economic
                                   Development and Education and
                                   Technology,



____________________________       ______________________________
DAVID Y. IGE, Chair                LORRAINE R. INOUYE, Chair

 
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