Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 175, H.D. 2, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to add new tax benefits for high technology industries and to amend current benefits to improve them.

Your Committee received written testimony in favor of this measure from Viata Online and Hawaii Electricians Market Enhancement Program Fund. Your Committee received written comments on this measure from Chun, Kerr, Dodd, Beaman & Wong and the Department of Business, Economic Development, and Tourism.

Your Committee has amended this measure by reinserting a section to provide a tax credit for financial institutions for worthless debts of qualified high technology business that was originally in the bill, and by making technical, nonsubstantive amendments for the purpose of clarity.

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 H.B. No. 175, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 175, H.D. 2, S.D. 2.