STAND. COM. REP. NO. 2553

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2482
                                        S.D. 1




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

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 2482, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO TECHNOLOGY BUSINESS
     TAXATION,"

begs leave to report as follows:

     The purposes of this measure are to:

     (1)  Allow biotechnology companies to sell their unused net
          operating loss carryover and unused tax credits to
          other qualified biotechnology companies; and

     (2)  Extend the capital loss carryforward to fifteen years
          for biotechnology companies.

     Your Committee finds that this measure would encourage the
biotechnology industry in Hawaii, and is in line with
recommendations from the industry, which are outlined in a
December, 1999, report entitled "Biotechnology in Hawaii:  A
Blueprint for Growth."  

     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. 2482, S.D. 1, and recommends that it pass Third Reading.


 
a                                                     SB2482 SD1
 
 
                                   STAND. COM. REP. NO. 2553
                                   Page 2


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



                                   ______________________________
                                   CAROL FUKUNAGA, Co-Chair


                                   _____________________________
                                   ANDREW LEVIN, Co-Chair




 
a                                                     SB2482 SD1