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. 3162 entitled:

begs leave to report as follows:

The purpose of this measure is to provide that when tax credits for the installation of renewable energy technology systems exceed a taxpayer's income tax liability, the excess may be carried over and used as a credit toward the taxpayer's liability in subsequent years, until the tax credit is exhausted.

Your Committee amended this measure by adding a new section to Chapter 241, Hawaii Revised Statutes, to enable franchise taxpayers to obtain the renewable energy technology income tax credit provided under section 235-12.5, Hawaii Revised Statutes, for all taxable years beginning after December 31, 2002, just as its predecessor (the Energy Conservation Credit, under section 235-12, Hawaii Revised Statutes) was available to financial institutions.

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. 3162, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3162, S.D. 1.