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 S.B. No. 2985, S.D. 2, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to assist federally qualified health centers by providing an income tax credit of 50 percent of the costs related to qualified capital improvements.

Hawaii Primary Care Association, Waianae Coast Comprehensive Health Center, and Waimanalo Health Center submitted testimony in support of this bill. The Department of Taxation submitted testimony in opposition to this bill. The Tax Foundation of Hawaii submitted comments on this bill.

Your Committee has amended this bill by deleting the percentage of the tax credit to facilitate further discussion.

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 S.B. No. 2985, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2985, S.D. 2, H.D. 2.