STAND. COM. REP. NO.361-02
Honolulu, Hawaii
, 2002
RE: H.B. No. 1945
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Sir:
Your Committees on Tourism and Culture and Economic Development and Business Concerns, to which was referred H.B. No. 1945 entitled:
"A BILL FOR AN ACT RELATING TO TAX CREDITS,"
beg leave to report as follows:
The purpose of this bill is to amend the hotel construction and remodeling tax credit by deleting the date by which construction or renovation costs must be incurred and inserting an unspecified date.
Testimony in support of this measure was submitted by the Visitor Industry Coalition, American Institute of Architects Hawaii State Council, Hawaii Business Roundtable, Subcontractors Association of Hawaii, Waikiki Improvement Association, General Contractors Association of Hawaii, and a concerned citizen. The Department of Business, Economic Development, and Tourism, Hawaii Tourism Authority, Building Industry Association of Hawaii, and a representative from Ko Olina Resort and Marina supported the intent of the bill. The Department of Taxation and the Department of Budget and Finance opposed this measure. The Tax Foundation of Hawaii offered comments.
Upon further deliberation, your Committees have amended this measure by:
(1) Deleting the unspecified date by which costs must be incurred to qualify for the tax credit;
(2) Making 4 per cent of the 10 per cent tax credit refundable and extending it to July 1, 2007;
(3) Making 6 per cent of the 10 per cent tax credit non-refundable and declaring that this portion of the credit applies to costs incurred before July 1, 2003; and
(4) Amending Act 10, Third Special Session of 2001, to reflect the above amendments.
As affirmed by the records of votes of the members of your Committees on Tourism and Culture and Economic Development and Business Concerns that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1945, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1945, H.D. 1, and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committees on Tourism and Culture and Economic Development and Business Concerns,
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____________________________ LEI AHU ISA, Chair |
____________________________ JERRY CHANG, Chair |
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