STAND. COM. REP. NO. 1181
Honolulu, Hawaii
, 2001
RE: H.B. No. 1282
H.D. 2
S.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committee on Water, Land, Energy and Environment, to which was referred H.B. No. 1282, H.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO ENERGY CONSERVATION TAX CREDITS,"
begs leave to report as follows:
The purpose of this measure is to extend the deadline for energy conservation income tax credits to July 1, 2006.
Your Committee received testimony in support of the intent of this measure with amendments from the Department of Business, Economic Development, and Tourism (DBEDT), Hawaiian Electric Company, The Gas Company, Hawaii Renewable Energy Alliance, Hawaii Solar Energy Association, Building Industry Association, Life of the Land, Sierra Club, Hawaii Chapter, and one individual. The Department of Budget and Finance and Department of Taxation submitted testimony in opposition. The Environmental Center at the University of Hawaii at Manoa and Tax Foundation of Hawaii submitted comments.
Your Committee finds that Act 163, Session Laws of Hawaii 1998, extended these tax credits to 2003 and called for DBEDT to establish a task force to examine ways to support increased energy efficiency. As part of this project, DBEDT cosponsored an Energy Efficiency Policy Symposium in November 2000. Symposium participants were supportive of Hawaii's tax credit program, and as a result the task force recommended extending the tax credit to 2010.
Your Committee supports this measure and finds the tax credits to be a successful means of encouraging alternate energy use in Hawaii. Your Committee has amended this measure to:
(1) Expand the purpose section;
(2) Extend the tax credits to 2010;
(3) Allow the tax credits for solar energy systems and heat pumps for single-family residential buildings to be awarded per unit;
(4) Include combined heat and power systems among the energy systems eligible for the tax credits and define combined heat and power systems; and
(5) Change the provision in the effective date, which would apply to the taxable years for the new tax credit for combined heat and power systems, to those beginning after December 31, 2000.
As affirmed by the record of votes of the members of your Committee on Water, Land, Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1282, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1282, H.D. 2, S.D. 1, and be referred to the Committees on Commerce, Consumer Protection and Housing and Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Water, Land, Energy and Environment,
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____________________________ LORRAINE R. INOUYE, Chair |
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