Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Economic Development and Business Concerns, to which was referred H.B. No. 719 entitled:

begs leave to report as follows:

The purpose of this bill is to clarify the tax benefits of high technology businesses.

The Department of Taxation, Office of the Governor, High Technology Corporation, Hawaii Technology Trade Association, and a concerned citizen testified in support of this bill. The Tax Foundation of Hawaii submitted comments on this bill.

Your Committee finds that this bill will lure and nurture high technology businesses by providing tax incentives and recognizing that Hawaii is part of the global economy and must compete against other locations for business activity and economic growth.

As affirmed by the record of votes of the members of your Committee on Economic Development and Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 719 and recommends that it pass Second Reading and be referred to the Committee on Finance.