STAND. COM. REP. NO.2749
Honolulu, Hawaii
, 2002
RE: S.B. No. 2831
S.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Sir:
Your Committee on Ways and Means, to which was referred S.B. No. 2831 entitled:
"A BILL FOR AN ACT RELATING TO AN EXTENSION OF THE RESIDENTIAL CONSTRUCTION AND REMODELING INCOME TAX CREDIT,"
begs leave to report as follows:
The purpose of this measure is to further stimulate economic activity in the residential construction industry by extending the tax credit for construction or remodeling costs incurred from July 1, 2002, to December 31, 2005.
The measure also shortens the retroactive ability to claim the tax credit from December 31, 2000, to October 1, 2001, to more precisely target the credit to periods after the September 11, 2001, terrorist attack and the impact it has had on Hawaii's economy.
Your Committee finds that Act 10, Third Special Session Laws of 2001 (Act 10), in part, enacted a new nonrefundable four percent residential construction and remodeling income tax credit (credit). The credit enacted by Act 10 is applicable to a taxpayer who incurs construction or remodeling costs up to $250,000 per unit before July 1, 2002, for residential real property in taxable years beginning after December 31, 2000, but not to taxable years beginning after December 31, 2003.
Your Committee has amended the measure by:
(1) Deleting the proposed language that would shorten the retroactive period for which the tax credit could be claimed;
(2) Deleting the proposed extension date of December 31, 2005, thus leaving the specific extension date blank and open for further discussion;
(3) Recasting the proposed amendment to the definition of "construction or remodeling cost" to better reflect the intent of the definition;
(4) Changing the effective date of the measure from being effective upon approval to July 1, 2050, to promote further discussion on the measure; and
(5) Making technical, nonsubstantive amendments to the measure for the purposes of clarity and style.
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 S.B. No. 2831, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2831, S.D. 1, and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
|
____________________________ BRIAN T. TANIGUCHI, Chair |
||