Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Agriculture, to which was referred H.B. No. 1074 entitled:

begs leave to report as follows:

The purpose of this bill is to give taxpayers a 10 percent income tax credit on the cost of construction of new drought mitigating water storage facility, or repair or reconstruction of existing water storage facility, including ancillary structures.

The Mayor of the County of Maui, Pineapple Growers Association of Hawaii, and Maui County Farm Bureau testified in support of this bill. The Department of Agriculture and the Hawaii Agriculture Research Center supported the intent of this bill. The Department of Taxation and the Department of Budget & Finance submitted testimony in opposition to this bill. Tax Foundation of Hawaii and Hawaii Farm Bureau Federation commented on this bill.

Your Committee has amended this bill by:

As affirmed by the record of votes of the members of your Committee on Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1074, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1074, H.D. 1, and be referred to the Committee on Finance.