Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2080 entitled:

begs leave to report as follows:

The purpose of this measure is to enhance hydrogen production in Hawaii through an income tax credit.

This bill provides a twenty per cent tax credit for the total cost of a hydrogen system placed into service after December 31, 2004 and before January 1, 2014 that has an unspecified nameplate capacity.

Your Committee finds that hydrogen is an abundant element as well as a viable alternative to hydrocarbon fuels, such as gasoline. This measure seeks to reduce the State's reliance on imported fossil fuels by enhancing the production of hydrogen in the State.

Your Committee has amended this measure by:

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. 2080, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2080, S.D. 1.