CONFERENCE COMMITTEE REP. 141
Honolulu, Hawaii
, 2003
RE: H.B. No. 1400
H.D. 1
S.D. 2
C.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Second State Legislature
Regular Session of 2003
State of Hawaii
Honorable Robert Bunda
President of the Senate
Twenty-Second State Legislature
Regular Session of 2003
State of Hawaii
Sir:
Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 1400, H.D. 1, S.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO HOTEL CONSTRUCTION AND REMODELING TAX CREDIT,"
having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.
The purpose of this bill is to stimulate Hawaii's tourism and construction industries by:
(1) Extending the Hotel Construction and Remodeling Tax Credit (Tax Credit) to construction or renovation costs incurred before July 1, 2004, provided that after July 1, 2003, the taxpayer shall also dedicate, in each taxable year for which the Tax Credit is claimed, 10 percent of the occupied retail space within the qualified hotel facility, if any, to the promotion and sale of Hawaii-made products;
and
(2) Expanding the definition of "qualified hotel facility" to include commercial buildings and facilities located within a qualified resort area.
Your Committee on Conference has amended this measure by:
(1) Deleting the provision that extends the Tax Credit to construction or renovation costs incurred before July 1, 2004, provided that after July 1, 2003, the taxpayer shall also dedicate, in each taxable year for which the Tax Credit is claimed, 10 percent of the occupied retail space within the qualified hotel facility, if any, to the promotion and sale of Hawaii-made products;
(2) Deleting the provision that expands the definition of "qualified hotel facility" to include commercial buildings and facilities located within a qualified resort area;
(3) Extending the tax credit increase an additional four years;
(4) Changing the amount of the tax credit to 8 percent of the construction or renovation costs incurred for each qualified hotel facility in Hawaii;
(5) Repealing the provision that the tax credit shall be available for taxable years beginning after December 31, 1998, but not for taxable years beginning after December 31, 2005;
(6) Repealing the provision requiring that the taxpayer be in compliance with all applicable federal, state, and county statutes, rules, and regulations to qualify for the tax credit;
(7) Changing the effective date of this bill so that:
(A) The amount of the tax credit will remain 10 percent for any hotel construction and remodeling costs incurred after November 1, 2001, and prior to the effective date of this bill; and
(B) The 8 percent amount will apply to construction costs incurred from the effective date of this bill until June 30, 2007, at which time the tax credit shall be repealed in its entirety;
and
(8) Making technical, nonsubstantive amendments for style and clarity;
As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 1400, H.D. 1, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 1400, H.D. 1, S.D. 2, C.D. 1.
Respectfully submitted on behalf of the managers:
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ON THE PART OF THE SENATE |
ON THE PART OF THE HOUSE |
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____________________________ DONNA MERCADO KIM, Chair |
____________________________ JERRY CHANG, Co-Chair |
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____________________________ CAROL FUKUNAGA, Co-Chair |
____________________________ BRIAN SCHATZ, Co-Chair |
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____________________________ BRIAN T. TANIGUCHI, Co-Chair |
____________________________ DWIGHT Y. TAKAMINE, Co-Chair |
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