Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 1074, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to give taxpayers a four percent general excise tax (GET) credit on the cost of construction of new drought mitigating water storage facilities, or the repair or reconstruction of existing water storage facilities, including ancillary structures.

The Hawaii Farm Bureau, Maui County Farm Bureau, Big Island Farm Bureau, Pineapple Growers Association of Hawaii, and Ulupalakua Ranch, Inc. testified in support of this bill. The Tax Foundation of Hawaii and the Department of Agriculture commented on this bill. The Department of Taxation opposed this bill.

Your Committee has amended this bill by:

(1) Changing the GET credit to an income tax credit;

(3) Inserting a five-year limit on the income tax credit;

(4) Changing the effective date to December 31, 2010; and

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1074, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1074, H.D. 2.