Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 2236, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to support efforts to enhance hydrogen production and use in Hawaii by establishing an income tax credit equal to 20 percent of the total cost of a geothermal-to-hydrogen system that is erected and placed in service after December 31, 2002, but before January 1, 2011. The tax credit applies only to the actual cost of the system, its accessories, and installation.

The Hydrogen Renewable Energy Enterprise and Hawaiian Electric Company and its subsidiary utilities, Maui Electric Company and Hawaii Electric Light Company, testified in support of the measure. The Department of Business, Economic Development, and Tourism and Hawaii Renewable Energy Alliance supported the intent of the bill. The Department of Taxation and the Department of Budget and Finance opposed the measure. The Tax Foundation of Hawaii offered comments.

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. 2236, H.D. 1, and recommends that it pass Third Reading.