Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 855, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to remove the expiration (drop-dead) date of July 1, 2003, for the alternate energy systems tax credit.

Alternate energy systems include wind energy, solar energy, heat pump, and ice storage systems. The bill repeals heat pump and ice storage systems from the alternate energy systems tax credit. This bill also requires the Tax Review Commission to review and report recommendations to the Legislature whether the alternate energy tax credits should be continued, amended, or repealed.

Your Committee finds that supporting alternate energy systems is critical to reducing the State's dependency on imported oil. This dependency not only sends capital resources out-of-state, but also creates a tenuous reliance on an unsustainable and unstable resource.

This bill provides state support for alternate energy systems by supporting locally owned alternate energy systems businesses, which is part of the growing and much desired high-technology industry.

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. 855, S.D. 1, and recommends that it pass Third Reading.